Auto makers Maruti Suzuki India and Tata Motors said on Monday they will increase the prices of vehicles to offset raw material and operational costs.

Maruti Suzuki said it will increase car prices by as much as 4 per cent next month, while Tata Motors will hike prices of its commercial vehicles, including trucks and buses, by up to 2 per cent from April.

The price bumps will vary depending on the model, the companies said.

Indian auto makers are seeing higher costs due to rising commodity prices, elevated import duties on raw materials and supply chain disruptions.

Tata Motors last increased prices of its commercial vehicles by up to 2 per cent in January.

Maruti’s price hike follows a 4 per cent increase in December, which took effect in January.

Maruti had also raised prices by ₹1,500-₹32,500 for several models last month.

Maruti Suzuki sells various models ranging from the entry-level Alto K-10 to multiple-purpose vehicle Invicto in the domestic market, with prices ranging from ₹4.23 lakh to ₹29.22 lakh, respectively (ex-showroom Delhi).

Maruti Suzuki India’s shares ended 0.24 per cent up at ₹11,536.10 apiece on the BSE on Monday.

Shares of Tata Motors on Monday ended 0.84 per cent up at ₹660.90 apiece on the BSE.

“A price rise could be a double edged sword. On one hand, there could be an impact on retail sales. On the other hand, dealers would look to clear as much inventory as they can with campaigns before the new prices come into effect in April.

“We have to wait and see how this plays out in the remaining days of March,” Saharsh Damani, CEO of Federation of Automobile Dealers Association, told The Telegraph.

A Honda Cars India spokesperson said that the auto maker is also looking to increase vehicle prices from next month.

A Hyundai Motor India spokesperson declined to comment when asked whether the company is also planning a price hike.

Ola shares tumble

Shares of Ola Electric Mobility ended over 7 per cent lower on Monday after the firm said its vehicle registration service provider Rosmerta Digital Services has sought the initiation of insolvency proceedings against its wholly-owned arm Ola Electric Technologies.

The stock slumped 7.18 per cent to settle at ₹46.91 on the BSE. During the day, it hit the record low of ₹46.40.

On the NSE, shares of the firm tumbled 7.22 per cent to ₹46.86. The company’s market valuation eroded by ₹1,601.13 crore to ₹20,691.20 crore.