Maruti Suzuki, India’s largest carmaker, is set to increase prices in September across models making it the third such hike in FY21-22. The Delhi-based carmaker had hiked prices in April and July. “We wish to inform you that over the past year the cost of the company’s vehicles continues to be adversely impacted due to an increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise,” Maruti Suzuki India (MSIL) said in a stock exchange filing.
“The price rise has been planned across models in September 2021,” MSIL added. The company, however, did not specify the quantum of hike planned for the next month. The hike will come just before the start of the festive season which kicks off with Ganesh Chaturthi on 10 September.
Tata Motors, Honda Cars, Mahindra & Mahindra, Renault, and Toyota had raised prices in the July-August period. The hikes have been exercised to negate the increase in raw material costs such as steel and precious metals.
From Alto to Vitara Brezza, the price rise has been planned across all models Maruti currently offers in the market.
Maruti Suzuki India Limited came out with a statement today saying, “Over the past year, the cost of the company’s vehicles continues to be adversely impacted due to increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise.
However, Maruti has not given clarity on how big the hikes would be. Earlier, Maruti had hiked the prices of its cars twice. In January, Maruti raised the prices of its cars by up to Rs 34,000 on some car models, citing a rise in input costs. In April, when it decided to implement the second hike, the prices of its cars went up by around 1.6%.
Maruti Suzuki is not the only Indian carmaker to hike the prices of its cars due to the rising input costs. The Indian auto industry is grappling with weaker demand and higher costs since the coronavirus pandemic struck in March last year. Since then, over the last few months, auto companies have seen demand return but have also warned about uncertainties ahead. Various carmakers have also increased prices this year to keep up with rising costs.
In July, Mahindra and Mahindra increased the prices of all its models for the third time this year. In the last hike, the price of Mahindra Thar received the highest revision as a few of its variants became expensive by approximately Rs 1 lakh. Before July, Mahindra revised the prices of its vehicles twice in January, followed by May.
Tata Motors also hiked the prices of its cars earlier this month. The hike, on an average of 0.8%, was implemented across all models. In May too, Tata Motors had hiked prices of its cars which made them costlier by up to Rs 36,000 for certain models.