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Maruti Suzuki to hike car prices from July due to rise in input costs
The country’s largest car maker Maruti Suzuki India (MSI) has announced that it would hike prices of its vehicles from next month. The carmaker, however, did not specify the rate of these hikes but said that the increase will wary for different models and it is planned in the second quarter of the current financial year. The company has attributed the price rise to rising input costs, or the cost incurred by the carmaker to produce each vehicles.
“Over the past year, the cost of the company’s vehicles continue to be adversely impacted due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price rise,” Maruti Suzuki India said in a regulatory filing.
The company did not reveal the quantum of the proposed price hike. The price rise has been planned in the second quarter (July-September period) of the current financial year and the increase shall vary for different models, the company added. Car makers across the country are struggling with rising metal cost and shortage of semiconductors in the market
On April 16, Maruti Suzuki announced the weighted average price increase in ex-Showroom Prices (Delhi) across models of 1.6 per cent. On January 18 this year, the automaker had announced price hike of select models by up to Rs 34,000 due to rise in input costs. Maruti Suzuki currently offers 14 models across the country. Only five of these models are sold through its premium retail outlet – the Nexa showrooms.
MSI sells a range of models from entry-level hatchback Alto to S-CROSS, priced between Rs 2.99 lakh and Rs 12.39 (ex-showroom prices Delhi) lakh, respectively. Last month, Maruti sold 32,903 units of passenger vehicles, which was a rise of more than 140 per cent compared to May last year, when the carmaker sold 13,702 units.
