With rising input costs and foreign exchange fluctuations impacting the margins of automakers, Maruti Suzuki India Limited has hiked prices of all its models by up to Rs 5,250 with immediate effect.
“The price hike is in the range of Rs 2,500 to Rs 5,200 after taking into account the rise in input costs,” a Maruti official said.
Starting with the small car Maruti800 to the sports utility vehicle Grand Vitara and luxury sedan Kizashi, Maruti offers 15 brands and over 150 variants of different models.
Earlier last month, Maruti Suzuki India Chief Operating Officer - Marketing and Sales Mayank Pareek had said the company would hike prices of its vehicles on the back of rise in raw material prices and forex fluctuations.
In order to counter the impact of adverse currency movement, India’s largest carmaker is targeting to reduce its forex exposure by nearly 65 per cent to $600 million by March 2015.
To mitigate impact of currency fluctuations, the company is also looking out for new markets to increase exports of its products. Besides Maruti, Honda, General Motors and Audi India have or are in the process of hiking prices of their vehicles. Honda has already raised the prices of its three models – Brio, Jazz and City - by up to 2.6 per cent with effect from October 1.