India’s largest carmaker Maruti Suzuki India Ltd is poised to increase prices of its cars across models from January 2021 to try and mitigate the impact of rising input costs due to the worldwide lockdown imposed to check the spread of China-origin coronavirus. Over the past year, the cost of the company’s vehicles have been impacted adversely due to increase in various input costs, Maruti Suzuki India said in a regulatory filing.
“Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021. This price increase shall vary for different models,” the biggest automaker of the country added.
Currently, Maruti Suzuki cars start from the entry-level Alto with price starting at Rs 2.95 lakh to multi-purpose vehicle XL6 priced up to Rs 11.52 lakh (ex-showroom, Delhi). It is worth noting that the Gurugram-based carmaker’s announcement comes at a time when the auto major is recovering from the coronavirus-induced disruptions. In November, Maruti reported a growth of 1.7% in its overall sales during on a year-on-year basis. The carmaker sold 1,53,223 units of vehicles last month, against 1,50,630 units sold in November 2019.
RC Bhargava, Chairman, Maruti Suzuki India, earlier this month had said that the company was expecting sales in December to be “pretty good” because of pending orders with its dealerships and the “rate of enquiries has sustained even after the festive season.”
“2020 hasn’t been a good year. We lost the first quarter so I definitely expect 2021 to be much better than 2020.” The company operations were adversely impacted due to the countrywide lockdown earlier this year and Maruti gradually built up production and running at full capacity at present.
Meanwhile, Maruti Suzuki has launched an online end-to-end real-time car finance service facility—for NEXA customers in 30 cities across the country to boost sales.
“Under the Smart Finance platform, currently hosted on the NEXA website, we have partnered with several popular financiers to provide custom-curated personalised loan offers for our customers. This digital service offers easy financing options and is completely transparent at each stage of the loan process,” Maruti Suzuki India (MSI) Managing Director and CEO Kenichi Ayukawa said in the statement.
He further highlighted among other advantages, the customer gets to customise the EMI by choosing the loan tenure and interest rate and select a preferred downpayment scheme.
At present, Maruti Suzuki has partnered with eight financiers—HDFC Bank, Yes Bank, ICCI Bank, IndusInd Bank, Cholamandalam Finance, AU Small Finance Bank, Mahindra Finance and Kotak Mahindra Prime—for the service.