As car and bike manufacturers resume operation, you can expect a 2-5% hike in prices being effective from as soon as next month to cover the losses from lockdown. Some manufacturers have already announced their price hikes.
The Indian automotive industry recorded zero sales for the first time in April 2020. Such an unprecedented event sure will have deep effects on the industry. With several relaxations to the lockdown rules now, most manufacturers have resumed operations at factories, dealerships and service centers. We have already seen a couple of new launches this month like the BS6 Nissan Kicks and the Renault Triber AMT and as carmakers are set on a road to recovery, it is still quite some time before the sales number start getting back to where they were. All this ultimately has an inevitable effect on car prices.
Among other things, the coronavirus crisis has also delayed several launches new car launches in our market. Unfortunately, the BS6 transition took place within the lockdown and a lot of manufacturers were left without BS6 products from April 2020, having discontinued BS4 stocks already. With launch schedules further getting delayed, some manufacturers will experience a gap in their product portfolio until the new cars arrive. Some others will try to take first mover advantage of this situation by bringing in more launches.
Honda is itching to launch the fifth-gen City in India. Similarly, Hyundai has the all-new i20 lined and Nissan also plans to launch the Magnite compact SUV by August, before the festive season. Over the last couple of years, we have seen a noticeable increase in the sale of premium cars and motorcycles. However, in the current scenario, people could prefer to switch back to more budget-based vehicles for transportation needs as many will try to avoid shared mobility for a long time to come. This gives car manufacturers to revisit their launch strategies.
Also Read : Royal Enfield Increases Price of BS6 Classic 350, Bullet 350 and Himalayan
According to several surveys, a lot of people will actually prefer buying private vehicles post the lockdown as commuting will become quite different from how we know it. There will be an expected surge in demand for private passenger vehicles. This will leave several car and bike manufacturers in a position to hike the prices of car and motorcycles. Automobile companies will thus be able to pass on the massive decline in sales to the customers with at least a 2-5% hike in prices and it could be effective from as soon as next month.
Also Read : KTM Hikes Price of All Motorcycles in India by Rs 4,000-5,000!
This year already has seen a round of price hikes with the BS6 updates for almost all manufacturers and now, the effect of the lockdown will continue to be felt in the coming months. We have already reported to you about several motorcycle manufacturers like Bajaj, Yamaha, Royal Enfield, KTM and even Husqvarna to have hiked the prices of all their motorcycles. You can expect more to follow soon.
