On Monday, India’s largest carmaker Maruti Suzuki India (MSI), has increased the prices of its entire product range by up to 1.9 per cent with immediate effect. The company cited the increase in various input costs as the reason for the hike. Maruti Suzuki Celerio has been exempted from the price hike. This is the third time the company has hiked product prices this year.
Maruti Suzuki, in its regulatory filing, informed the price hike. "The weighted average price increase in Ex-Showroom Prices (Delhi) across select models is 1.9 per cent," MSI said. The company had earlier hiked prices twice in January and April, with the overall hike amounting to around 3.5 per cent. “Please note that with effect from 06th September 2021, the company announced a price change for select models owing to an increase in various input costs," the company said. MSI had announced the price hike in August.
Currently, 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. The country’s largest carmaker had informed that the products would need a price hike to protect its profitability. MSI Senior Executive Director (Sales and Marketing) Shashank Srivastava termed it necessary and said that the move was meant to meet the impact of high commodity costs. He had informed that steel prices have gone up from Rs 38 per kg last year to Rs 65 per kg in May-June this year, causing the company to shorten its profit margin. Similarly, copper prices have doubled in the period.
Meanwhile, Maruti Suzuki, last week, announced the recall of 1,81,754 petrol units of its vehicles to look into a possible defect. The company said that it would recall units of Maruti Suzuki Vitara Brezza, Maruti Suzuki Ertiga, Maruti Suzuki Ciaz, Maruti Suzuki S-Cross and Maruti Suzuki XL6 manufactured between 4th May 2018 to 27th October 2020 to inspect a defect related to their motor-generator unit. The recall process of the mentioned units will start from the first week of November 2021 and have instructed its users to avoid driving these vehicles in waterlogged areas until they are recalled.