India’s largest carmaker Maruti Suzuki India Limited.
Indian top carmaker Maruti Suzuki said on Friday, 2 December 2022, it planned to increase the price of its vehicles in January, prompted by continued cost pressure due to inflation and recent regulatory requirements. However, the company did not disclose the quantum of the proposed price hike.
Maruti Suzuki said, “The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models. The company took all possible measures to minimize the impact.”
“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,” the company said in a statement, adding that the hike would vary across models. Maruti did not say how much it planned to raise prices by.
The automaker said that it continues to witness increased cost pressure driven by overall inflation.
“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. The Company has planned this price increase in January, 2023 which shall vary across models,” the filing said.
Maruti Suzuki India had announced a price change for hatchback Swift and all CNG variants owing to increase in various input costs earlier in April 2022. Vehicle prices have increased by 1.3 percent on all its models.
The company had hiked vehicle prices by around 8.8 percent owing to constant increase in input costs largely driven by pricier commodities in between January 2021 to April 2022.
The automaker releasing its sales figures for the month of November 2022 stated that its total sales rose 14.4 percent year-on-year to 1.59 lakh units compared to 1.39 lakh units in the same month last fiscal.
Meanwhile, shares of Maruti Suzuki India traded 1.54 percent lower at Rs 8,820.10 apiece on NSE during late trading hours on December 2.
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