In a move that may impact consumers, Maruti Suzuki, India's largest car manufacturer, has announced a significant price hike for its popular models, the Swift and selected variants of the Grand Vitara, effective immediately.
The prices of the Swift have been increased by up to Rs 25,000, while the Grand Vitara Sigma variant will see a price hike of Rs 19,000. This announcement comes just months after the company had raised prices across its model range in January 2024, citing mounting inflationary pressures and increased input costs.
At the time, Maruti had said: "We have been trying to absorb the increased input costs for a while now, but the current market conditions have compelled us to pass on some of the hikes to our customers. The price increase will be substantial in some models."
The Swift, which has been one of the best-selling cars in the Indian market, is likely to see a significant impact on its sales due to the price hike. The Grand Vitara, a relatively new entrant in the compact SUV segment, may also face challenges in attracting buyers with the increased prices.
Industry experts believe that the price hike could be a result of various factors, including the rising costs of raw materials, global supply chain disruptions, and the overall economic slowdown. The Indian automobile industry has been grappling with these issues for some time now, and the latest move by Maruti Suzuki is a reflection of the challenging market conditions.
It is not clear why these models were chosen, but the hatchback segment (Swift) and the compact SUV segment (Grand Vitara) may be facing unique challenges, such as increased competition or changing consumer preferences, which could have influenced the decision to hike prices for these specific models.