Maruti Suzuki announces price hike – cars to get costlier by 1.1% from today
Maruti Suzukihas announced a price hike for its cars, effective from today.
- The company’s cars will now cost 1.1% more across models.
- The company had earlier cited cost pressure due to inflation and regulatory requirements as the reason for the price hike.
Suzukiis not the only automaker to raise prices. Car makers Honda, Hyundai and Tata Motors also plan to hike prices in January.
AdvertisementIndia’s largest automaker Maruti Suzuki announced a price increase of 1.1% across models effective Monday. This is in line with the automaker’s statement last December that its cars would get costlier from January 2023 due to inflation and regulatory requirements.
In a regulatory filing with the exchanges on Monday, Maruti Suzuki said that the price increase is calculated using ex-showroom prices of Delhi.
Maruti Suzuki, in its earlier filing in December 2022, had said it was forced to pass on the increased cost pressures it was facing to the customers.
“The Company continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements. While the company makes maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price increase,” said Maruti Suzuki.
Other automakers also announce price hikes
Maruti Suzuki is not the only automaker that has raised its prices in the past few months. Japanese car maker Honda has said it is planning to increase prices of its entire model range by up to ₹30,000 from January 23 to partially offset the impact of rising input costs and prepare products in compliance with upcoming stricter emission norms. Hyundai too plans to hike prices in January.
Companies such as Tata Motors, Skoda and Volvo have also effected price hikes in the last three months. While Skoda raised them by up to ₹60,000, Tata Motors increased prices by up to 0.9% across models.
In November 2022, premium car maker Volvo hiked the price of the XC40 Recharge, XC60, and XC90 SUVs in India by up to 1.8%, citing increase in input costs due to disruptions in the global supply chain.
A recent report revealed that Tata Motors is planning another price hike in January 2023. Shailesh Chandra, managing director, passenger and electric vehicles at Tata Motors, in an interaction with PTI said that the company was considering a price increase to offset the increasing costs due to regulatory changes around emission norms and increasing battery prices.
Maruti Suzuki’s two price hikes in 2022
While this is the first price hike from the company in 2023, the automaker had announced two price hikes in 2022.
The first price hike was announced in January 2022 and the second in April 2022. During the last hike in April 2022, the automaker increased the prices of its popular cars, such as its hatchback Swift, Alto, Baleno, Ertiga and more by up to ₹22,000. In January 2022, the prices of its cars were hiked in the range of ₹21,000-30,000.
AdvertisementEarlier in January, Maruti Suzuki had reported a decline in sales for December 2022. The company sold 1.12 lakh cars in December 2022, down from 1.23 lakh in December 2021.
The automaker took the biggest hit in the mini, compact and mid-size segments as the sales in these segments fell to 68,421 units in December 2022, from 86,869 units in December 2021. These segments include cars like the Swift and the Baleno.
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