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Auto Price Increases Loom as Tax Benefits Lose Steam
Carmakers plan price hikes from January as GST-related benefits taper off, with rising input, logistics, and currency costs squeezing margins and forcing manufacturers to pass higher expenses on to consumers.
The temporary boost from lower GST impact is fading for India’s automobile industry as carmakers prepare price hikes from January. Rising input costs, higher logistics expenses, and margin pressures are prompting manufacturers to pass costs to consumers. Companies had earlier absorbed some costs using tax efficiencies, but sustained inflation and currency volatility are now limiting that flexibility across passenger vehicle segments.