Maruti Suzuki hikes price of selected models, others may follow suit
Maruti Suzuki on Friday said it is increasing the prices of select models owing to a rise in various input costs.
“The weighted average increase in ex-showroom prices (Delhi) across models is 1.6 per cent,” it said in a regulatory filing. The new prices are effective from Friday. It is expected that other automakers will follow suit. Automakers in India have been hiking prices this year, citing rise in various input costs. In January, Maruti had cited a rise in input costs and raised prices for some car models. The price hike will vary across models. Maruti’s fleet starts from the entry-level Alto and goes up to the premium multi-purpose vehicle XL6.
Raw material prices are hardening with the full impact of cumulative increases set to be felt in Q3 and Q4 of this financial year. Steel, aluminium, copper and rubber — key inputs for the auto industry — are headed northwards. Steel is up 30 per cent in 6 months, aluminium up 40 per cent and copper up 77 per cent since last year.
Firms also do not have much room left to absorb the hike in input cost because of losses incurred in the first two quarters of the last financial year.
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