Increase in the cost of the raw materials is becoming a cause to create pressure on customers by hiking the prices of cars by manufacturers. Auto makers are increasing the prices of cars one by one, and it seems that this trend will continue in future.
Hikes in the prices are caused by the BS IV emission norms which were implemented in 13 major cities and BS III norms which were implemented in remaining cities in India. These norms forced the car makers to develop advanced engines in which a lot of investment is required. For many models these norms were implemented.
The cost of the materials were increased after implementation of these norms. Car manufacturers decided to increase the prices again due to rising the costs of steel and rubber, when the results of the Union Budget was announced in India.
Increasing the cost of the raw material led to the decision to increase the price of the cars in India.