Automakers in India to increase vehicle prices in April 2022, details here
Business

Automakers in India to increase vehicle prices in April 2022, details here

By Jessica

As automakers deal with the ongoing global crises, a semiconductor scarcity is unavoidable. Almost every automaker in the world has been suffering due to this shortage. With Tata Motor’s Nexon EV’s price hike of Rs 25,000 already announced, Ola Electric has also announced an increase in the price of its scooter range for the next purchase window. 

Due to supply disruptions and the semiconductor crisis, automotive companies operating in India have been suffering losses for more than a year. Although the situation regarding chip shortage has improved compared to 2020 and 2021, most automakers have a tremendous backlog due to lower production and higher demand. Also, the Russia-Ukraine war has further hampered global semiconductor chip supply.

Most automakers raised prices in January 2022, and it is important to remember that almost all automakers raised their prices throughout 2021. The demand for used vehicles has increased dramatically because of the rising costs of new vehicles. 

Read also: This Royal Enfield Meteor 350 is modified into an extremely cool Bobber, check pics

There was strong growth in the used car market last year, and the market is likely to grow even more in the future. Despite the growth of the used car market, the demand for new vehicles hasn’t slowed, with newly-launched models generally attracting the most interest. For example, the Mahindra XUV700, which was released in 2021, is a popular SUV in India, with some variants having a waiting period of more than 1.5 years.

Despite the country’s gradually increasing infrastructure for plug-in electric vehicles, we do not expect electric vehicle adoption to become widespread in India anytime soon. Electric mobility is expected to grow considerably in the Indian automotive market in the near future, despite the fact that EVs consume more semiconductor chips than ICE cars, and a shortage of these chips is driving up electric vehicle prices.

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