Tata Motors and BMW are among the carmakers planning price increases in India next month, as higher materials and logistics costs linked to turmoil in the Middle East begin to weigh on the sector, Nikkei Asia reported.

Tata Motors will raise commercial vehicle prices by up to 1.5%. Tata Group’s passenger vehicle business is also expected to lift prices by an average of 0.5%, with changes varying by model.

Audi will increase passenger car prices by as much as 2%, according to the report. BMW Group India is also considering similar steps, with its revisions set to take effect on 1 April.

"To offset escalating logistics and material costs alongside a depreciating rupee, we are implementing a price adjustment of up to 2% across our range," Hardeep Singh Brar, president of BMW Group India, told Nikkei Asia.

The report said concerns are growing that Iran’s de facto blockade of the Strait of Hormuz could further push up the cost of imported aluminium and steel, which were already rising.

Higher maritime logistics costs are expected to hit foreign-owned automakers more sharply, given their reliance on imported raw materials and finished vehicles.

Despite these pressures, demand has remained strong. Passenger car sales in India rose 11% year on year to a record 417,705 units in February, according to the Society of Indian Automobile Manufacturers (SIAM).

Nikkei Asia reported that major automakers have used lower prices to capture demand since India lowered its goods and services tax last autumn.

SIAM has warned that a prolonged Middle East conflict could disrupt supply chains. The report added that price rises could extend to more manufacturers, including market leader Maruti Suzuki India.

"Tata Motors, BMW among automakers set to raise prices in India" was originally created and published by Just Auto, a GlobalData owned brand.

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