Car market leader Maruti Suzuki India is reviewing a possible increase in vehicle prices as rising commodity costs begin to put pressure on input expenses, even as demand remains strong following GST rate reductions.
Speaking at a virtual conference on Monday, senior executive officer (marketing & sales) Partho Banerjee said the company is closely tracking cost trends amid a volatile global situation.
Maruti Suzuki currently has a backlog of 1.75 lakh pending orders due to production constraints, while January alone saw bookings of 2.78 lakh units.
“On the commodity front, prices are going up. (In) precious metals, the increase is phenomenal, but we are keeping a very close watch due to the geopolitical scenario also... but yes, in times to come, we are going to review the price increase,” Banerjee said.
He was responding to a question on whether the surge in commodity prices could lead to higher vehicle prices in the near term.
“Our endeavor being a market leader, has always been to minimise the cost increase to our customers. Our supply chain team, production team, and all are working to see how much we can absorb the cost increase due to commodities,” he said.
However, Banerjee made it clear that there is a limit to what the company can absorb. “After a certain extent, if we are unable to somehow accommodate the cost increase, we need to pass it on to our customers,” he said.
While he did not indicate when a price hike could take place, Banerjee pointed out that Maruti Suzuki has already rolled out a price protection scheme for customers affected by delivery delays.
“We were seeing first-time customers, who are coming to the four-wheeler segment, and we need to give them the opportunity to upgrade. Hence, we have given a price protection scheme (for those who have booked their vehicles)... There will be no price increase (for those customers),” he said.
The comments come months after the company cut prices of several entry-level models following the implementation of GST 2.0 in September last year.
The reductions included cuts of up to Rs 1,29,600 for the S Presso, up to Rs 1,07,600 for the Alto K10, Rs 94,100 for the Celerio and up to Rs 79,600 for the Wagon-R.
On the broader outlook for the passenger vehicle segment, Banerjee said growth prospects remain steady but depend on how global conditions play out.
“The auto industry should again go back to a CAGR of 6-7 per cent. However, seeing the commodity prices, which are right now shooting up very high, we need to wait and watch how the geopolitical scenario happens, then maybe a better forecast can be given,” he said.
At the same time, he said policy support is likely to help demand. According to Banerjee, GST 2.0 provided momentum to the sector, and the Union Budget 2026-27’s focus on higher capital expenditure in infrastructure is “really going to boost the auto industry”.
January turned out to be a record month for the company. Banerjee said Maruti Suzuki posted its highest-ever monthly total sales of 2,36,963 units.
“We got bookings of over 2.78 lakh units, a 25 per cent y-o-y growth... that market is giving us around 9,000 to 10,000 bookings every day,” he said.
Exports also touched a new monthly peak, with shipments of 51,020 units in January. Banerjee added that the company’s newly launched SUV VICTORIS crossed sales of 50,000 units within five months of launch.
Production constraints, however, are expected to continue in the short term. “We will have to manage for a few more months till new capacities are available,” Banerjee said.
Maruti Suzuki’s second plant at Kharkhoda in Haryana is scheduled to become operational by April 2026. This will be followed by the commissioning of the fourth line at the company’s Gujarat facility, together adding an annual capacity of 5 lakh units.
On the electric vehicle front, Banerjee said the e VITARA is set to enter the domestic market this month. “Already dispatches have started,” he said.