In light of mounting input costs, soaring commodity prices, and the persistent inflationary climate, Maruti Suzuki, a prominent player in the automotive industry, has opted to revise the prices of its vehicles. The decision, communicated through a regulatory filing, outlines an estimated weighted average increase of 0.45 percent across the various models offered by the company. Effective from January 16, this adjustment, rooted in ex-showroom prices in Delhi, reflects the company’s response to the challenging economic landscape.
Maruti Suzuki India clarified that the rationale behind this price adjustment is the heightened cost pressures arising from overall inflation and the upward trajectory of commodity prices. While emphasizing ongoing efforts to contain costs, the company stressed the necessity to pass on some of these increases to the market. It was emphasized that the magnitude of this price hike would differ among the different models in Maruti Suzuki’s lineup.
In December, Maruti Suzuki experienced a marginal year-on-year decline in local sales, selling 1,06,492 units, while exporting 26,884 units. Interestingly, other major car manufacturers are also instituting price hikes this month.
This move follows Maruti Suzuki’s earlier price adjustments, including a 0.8 percent increase across all its cars on April 1, 2023, and a 1.1 percent hike in January 2023. Holding a commanding 45 percent market share in India, Maruti Suzuki continues to play a pivotal role in the automotive sector.
Despite a slight dip in sales in December, Maruti Suzuki achieved its highest-ever monthly sales in October, recording 1,99,217 units and achieving a remarkable 19 percent year-on-year growth. The company offers a diverse range of cars, with prices ranging from Rs 3.54 lakh to Rs 28.42 lakh (ex-showroom), covering models from Alto to Invicto.
Notably, other leading automakers such as Tata Motors, Audi, Mahindra, Hyundai, MG Motor, BMW, Volkswagen, Skoda, Mercedes-Benz, Volvo, Nissan, and Honda have also announced plans to increase vehicle prices in January, signaling a broader industry response to economic challenges.