Mercedes-Benz India and Audi India have already announced that they will increase the prices of their vehicles from April 1, 2022. Other luxury car makers, such as Volvo, are expected to follow suit.
Luxury automaker Volvo Car India plans to raise prices for its models due to rising input costs. Other luxury brands like Mercedes-Benz India and Audi India have already announced that they will increase the prices of their vehicles from April 1, 2022.
Volvo Car India currently sells sedans like S60 and S90, and SUVs like XC40, XC60 and XC90, in the country.
“Given the challenges of rising input costs, we are considering raising the price of our models in India,” Jyoti Malhotra, managing director of Volvo Car India, told FE.
However, the company has neither disclosed the exact date when the price increase will take place nor shared the amount of the price increase.
“Although it (the price increase) seems inevitable, we have not decided on the timing yet. We will announce the price increase as we make this decision,” Malhotra said.
Volvo Car India sold 1,724 units in 2021, registering a growth of 26.67% from 1,361 units sold in 2020.
There was a sharp rise in the prices of raw materials, which are used in the automotive industry, due to the Russian-Ukrainian war. On their average prices in the second half of 2021, aluminum prices increased by 48%, palladium by 38%, rhodium by 35%, platinum by 13%, rubber by 28% and copper by 15% .
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The country’s biggest luxury automaker, Mercedes-Benz India, and rival brand Audi India will raise prices for their models by up to 3% from next month due to high input and logistics costs.
Mercedes-Benz India sales increased by 42.43% to 11,242 units in 2021 from 7,893 units in 2020. Audi India recorded sales of 3,293 units in 2021, a jump of 101.04% from compared to the 1,638 units sold in 2020.