Bengaluru, 30 July (H.S.):

The proposed increase in vehicle prices by several automobile manufacturers from August 1 is expected to raise the cost of vehicle ownership, adding to the financial burden on consumers while creating fresh challenges for taxi operators, travel agencies and the tourism sector.

Automobile companies have announced price revisions across several models, with the increase expected to go up to ₹30,000 depending on the model and variant. The manufacturers have attributed the revision to higher input costs, including rising prices of steel, aluminium, rubber, plastics, semiconductors, batteries and other components, besides continued inflation, supply chain disruptions and investments in newer technologies.

The Karnataka State Travel Operators Association (KSTOA) said the hike comes at a time when transport operators are already grappling with mounting operating expenses. The association warned that the increase could discourage new vehicle purchases and delay fleet expansion plans, particularly among small and medium-sized operators.

KSTOA president K. Radhakrishna Holla said the immediate impact would be felt by middle-class families planning to buy their first vehicle, as higher acquisition costs would add to existing financial pressures. He pointed out that buyers are already facing increased expenses due to higher vehicle loan interest rates, insurance premiums, road taxes, registration charges, toll fees and fuel prices.

According to the association, the impact is likely to be more pronounced for self-employed taxi owners, tourist cab operators, luxury car rental firms and travel companies that rely on regular fleet upgrades to remain competitive. Rising maintenance costs, expensive spare parts and higher financing charges have already squeezed profit margins across the sector.

The association cautioned that continued escalation in vehicle prices may force many operators to retain older vehicles for longer periods instead of investing in new ones. Such a trend, it said, could affect passenger comfort, service quality, operational efficiency and the overall competitiveness of the tourism industry, which depends heavily on modern and reliable transport services

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Hindusthan Samachar / Arun Lakshman