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regular-article-logo Sunday, 26 May 2024

Maruti Suzuki implements price hike for vehicles due to increased input costs, inflation

The car manufacturer had last hiked the prices of its cars by 0.8 per cent across the board from April 1, 2023. Before this in January 2023, the company had announced a price of 1.1 per cent hike across models

Our Special Correspondent New Delhi Published 17.01.24, 11:51 AM
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Maruti Suzuki raised the prices of its vehicles on Tuesday because of increased input costs, rising commodity prices and inflation. The estimated weighted average of increase across models is 0.45 per cent, the auto major said in a regulatory filing.

This indicative figure is calculated using ex-showroom prices of models in Delhi and will come into effect from January 16.

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“The company had planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices,” Maruti Suzuki India had said.

“While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market. This price increase shall vary across models,” it added.

In December, Maruti Suzuki sold 1,06,492 units locally (down 1.28 per cent year on year) and exported 26,884 units. Other car makers are also raising prices this month.

The car manufacturer had last hiked the prices of its cars by 0.8 per cent across the board from April 1, 2023. Before this in January 2023, the company had announced a price of 1.1 per cent hike across models.

Maruti is the largest car manufacturer in India with a market share of 45 per cent.

The auto maker reported its highest-ever monthly sales at 1,99,217 units in October this year, resulting in a 19 per cent YoY growth. It had dispatched 1,67,520 units in October 2022.

The company retails a wide range of cars from Alto to Invicto with prices ranging from Rs 3.54 lakh and Rs 28.42 lakh (ex-showroom).

Tata Motors has also indicated a price hike in January though the specific percentage has not been disclosed yet.

Audi plans to increase its vehicle prices by up to 2 per cent in January due to escalations in input and operational costs. Mahindra also intends to raise the price range for its SUVs although the exact hike details are still not out.

Hyundai and MG Motor have also decided to increase their prices.

BMW, Volkswagen, Skoda, Mercedes-Benz, Volvo, Nissan, and Honda have announced price hikes from January.

The hikes ranged from 2-3 per cent.

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