Maruti Suzuki car prices to increase from September amid rising input costs

Maruti Suzuki, the Delhi-based carmaker, has announced that its set to increase the prices of its vehicles from September due to the increase in input costs. India's biggest manufacturer of vehicles made the statement in a regulatory filing today. The company said in the regulatory filing, “Over the past year, the cost of company's vehicles continues to be adversely impacted due to increase in various input costs."  Even though the amount of hike has not been revealed, this increase in price was expected. Earlier in June this year, Maruti Suzuki India had announced through a regulatory filing to the Bombay Stock Exchange (BSE) that the firm will be hiking prices in the second quarter (Q2) of Financial Year 2021-22. 

Further details

Maruti Suzuki India said in a statement, "The price rise has been planned across models in September 2021.” Currently, the manufacturing giants sell a host of models from entry-level hatchback Alto to S-CROSS. They are priced between Rs 2.99 lakh and Rs 12.39 lakh according to the showroom prices in Delhi respectively. Therefore, the company has no other choice but to pass some of the impacts on to the customers with the help of a price rise. Even giants like Tata Motors, Honda Cars, Mahindra & Mahindra, Renault, and Toyota had to increase their prices in the July-August period.

The hikes were made to negate the increase in raw material costs such as steel and precious metals. The cost of commodities required to produce the vehicles are expected to remain highs in the first half of FY22 which will result in the multi-year high average in FY22. According to a report by rating and market intelligence firm ICRA, the peak might soften in the second half of the year, which will decrease the prices. This will be the third such instance in 2021, where the carmaker will be increasing the price of its cars. Maruti-Suzuki increased the price of a few models by almost ₹ 34,000 in January and hiked it again in April 2021. On both occasions, the carmaker had given the reason as rising input costs for the price hike.

(With PTI inputs)