The hikes embody each regulatory prices in addition to uncooked materials price rises, mentioned automotive entrepreneurs. “What we are witnessing is that the pricing power for OEMs differs across segments. Sedans are classic example. The segment has declined and value perception for SUVs, MPVs has improved, allowing OEMs to implement tougher price increases,” mentioned Ravi Bhatia, nation hesad, JATO.
The demand pull from clients for SUVs, small and massive, has resulted into automakers launching extra fashions in this house. The gross sales of SUVs have overshadowed the expansion in sedans and compact automobiles.
Agreed Ashish Modani, VP, ICRA: “The compact SUV segment is the best performing segment and the waiting period in this segment provides flexibility to OEMs to take a price hike.” The section’s potential to soak up price hike can be depending on its ticket price. “The entire cost is not completely passed on at one go for smaller vehicles because the ability of an Alto to absorb, say a Rs 5,000 hike, is less than the ability of a Vitara Brezza to absorb a Rs 7,000 hike,” he added.
Car sellers mentioned pricing selections are at all times demand and provide pushed. Nikunj Sanghi, MD, JS4 Wheel Motor, mentioned: “Sometimes best selling models cross subsidise their stablemates. Sometimes old war horses — models that have been market leaders for many years — bear the brunt of the bigger price hikes.”
The JATO information reveals the highest bestsellers with highest markups since March 2020 have been the brand new variant of Range Rover (45%), BMW X5 (38%), new technology Thar (35%), new technology Hyundai i20 (19%) and facelifted model of Skoda Superb, new variant of BMW X3 and Audi A7 — in the 18-18.6% vary.