NEW DELHI: Maruti Suzuki (MSIL) cars are all set to become pricier next month since the carmaker has decided to pass on rising input costs to consumers. While the exact quantum of of the hike is not known yet, sources say it will vary for different models.
“Over the past year, the cost of the company’s vehicles has been impacted adversely due to an increase in various input costs. 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 April, 2021. This price increase shall vary for different models,” MSIL said in a regulatory filing.
MSIL sells a range of models from entry-level hatchback to the S-CROSS utility vehicle, priced between `2.99 lakh and `12.39 (ex-showroom prices Delhi). This will be the second time in three months that MSIL, which controls more than 50 per cent of India’s passenger vehicle market, has decided to go for a price hike. Earlier in January this year, Maruti had cited similar reasons to increase prices by up to Rs 34,000 on a few models.
According to sources, more automakers are expected to increase prices from next month since raw material prices have surged substantially in the last six months. Steel prices alone have gone up by 55 per cent between June and December 2020. The repeated hikes, almost always in the range of 2-4 per cent of the vehicle’s ex-showroom price, will impact consumer sentiment especially at a time when fuel prices are already at a record high.