Why has the price shot up from 9.80 lacs for V 1.5MT in March 2018 to 11.57 lacs now. Appears steep

The significant increase in the price of the V 1.5MT from 9.80 lacs in March 2018 to 11.57 lacs now can be attributed to several factors, including inflation, rising production costs, and changes in market demand. Here are some key points to consider:

Inflation has played a role, as general price levels have increased over the years. Additionally, the automotive industry has seen rising costs due to advancements in technology, stricter emission norms, and the incorporation of more sophisticated safety features, all of which contribute to higher production costs.

The shift in global automotive markets, particularly the growth in middle and low-income economies, has also driven up demand for vehicles. This increased demand, coupled with the need for more fuel-efficient and environmentally friendly vehicles, has led manufacturers to invest more in research and development, further increasing costs[2).

Moreover, the rise in prices of raw materials such as copper, which is crucial for electric vehicles and other automotive technologies, has also impacted the overall cost. Copper prices are expected to rise sharply towards the end of the forecast horizon, reaching around $10,000/t in nominal terms by 2025, which can contribute to higher production costs[3).

Lastly, the Indian market itself has seen significant growth and changes in consumer preferences, leading to higher pricing due to increased demand and the introduction of new features and technologies in vehicles.