BHUBANESWAR : Maruti Suzuki, the country’s largest carmaker, on Thursday announced a price hike across models to offset adverse impacts of rise in input costs, foreign exchange fluctuations and increasing fuel prices. This will be its second price hike this year, the first being in January.The price hike — up to Rs 6,100 (ex-showroom Delhi) — will vary across models. “The hike is mainly due to the increase in commodity prices. Besides, the foreign exchange rate has impacted the company adversely. The increase in fuel prices have added to our logistics costs,” said a spokesperson.
The auto major had in January this year increased vehicle prices from `1,700 to `17,000 across models. However, this time around, the hike would be marginal for some models. While the SUV segment is likely to see the maximum hike, prices of hatchback models may not see a huge difference.Similarly, luxury carmaker Mercedes Benz has also announced an upward revision of prices of its entire model range effective from September 1, 2018. The price correction would be up to a moderate four per cent, varying across models.
“The rising inflation due to geo-political dynamics, coupled with rising input costs and increasing forex rates have been exerting significant pressure on overall operations,” said Roland Folger, MD & CEO, Mercedes-Benz India. While the rupee has depreciated by more than five per cent against Euro in the last eight months, the Repo rate has gone up by 0.5 per cent in the last couple of months.
“Considering the rapid depreciation of rupee against major currencies in the last few days, we were left with no options but to revise the prices,” Folger said. Other carmakers such as Tata Motors, Mahindra & Mahindra and Honda had also announced price hikes citing cost pressures, which came into effect from this month.