India: Auto sector price to correct upward in Jan '21

Buoyed by a sustained pull in demand for the fourth consecutive month, the automotive companies across the board are expected to hike prices of their vehicles in January to offset input cost pressures and improve their sagging profit margins. The hike, which comes into effect from 1st January '21, will affect buyers of two-wheelers, cars, SUVs and commercial vehicles.

Car companies are all set to raise prices from Jan '21 for the following reasons mentioned below: Sales of vehicles adversely impacted due to lockdown Increased input costs across the globe due to Covid impact Weakening rupee against dollar where almost 5%+ depreciation has been seen this year India's largest carmaker,Maruti Suzuki India