Thinking of buying a car? Maruti Suzuki set to raise prices soon   |  Photo Credit: iStock Images
- Maruti Suzuki has raised prices 4 times in the past year by 4.9% across categories
- It continues to witness robust demand and semiconductor supply gets better
- Carmakers globally are hit by increased metal prices which they say need to be passed to end customers
India’s largest carmaker Maruti Suzuki will raise prices across categories from January 2022 to deal with increasing input costs and prices of raw materials. This will the fourth such price hike by the company in a year.
Automakers globally have witnessed a surge in input prices as raw materials cost from metals to semiconductors increased.
“Over the past year, the cost of company’s vehicles continue to be adversely impacted due to increase in various input costs. Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through a price hike. The price rise has been planned in January 2022. The increase shall vary for different models,” said Maruti Suzuki in an exchange filing on Thursday.
India’s largest auto manufacturer sells cars in all segments, from the entry-level hatchback Alto to the S-cross in a range of Rs 3.15 lakh to Rs 12.49 lakh (ex-showroom Delhi).
This will be the fourth time that the automaker will increase prices within a year. It did not mention the quantum of the hike. In September, the company raised prices across the product portfolio by 1.9%, except its Celerio model. Another increase of 1.8% on Delhi ex-showroom prices across models was announced in April. On January 18, it raised prices by 1.4-1.5% across models and again in July on CNG vehicles.
Shashank Srivastava, senior executive director (marketing and sales), Maruti Suzuki told Economic Times, cumulative price rise during the year was 4.9% which was less than the overall increase in commodity prices.
During the year, steel prices increased to Rs 77 per kg in the third quarter of the fiscal up from Rs 38 per kg in the April-May period of 2020. Copper prices went up from $5,200 per tonne in may 2020 to $9,700 per tonne now.
The car manufacturer reported a total sales of 1.39 lakh units in November 2021, down 0.6% from 1.38 lakh units sold in October of same year. The company’s sales declined 9.1% year-on-year (YoY). In an interview with ET NOW earlier, Srivastava said the company is witnessing strong demand and the semiconductor supply was getting better. The total vehicle production volume in December across Haryana and Gujarat plants could be around 80% to 85% of normal production, he added.