Maruti Suzuki Ltd., India’s largest carmaker withholding more than 50% of market share in the passenger vehicle segment, announced that from January’21 it would increase prices of its vehicles.
It is forecasted that the price rise could be more this time, as the cost of raw materials has increased unusually.
The Company said: "Over the past year, the cost of the company's vehicles has been impacted adversely due to 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 January 2021."
The hike in price will stretch across models, starting from Maruti’s fleet of entry-level small car Alto and goes up to premium multi-purpose vehicle XL6.
The prices of raw materials prices are reaching at tough heights with the full impact of cumulative increases to be felt in Q3 and Q4 of this financial year. Aluminium and other key components for the auto industry are all headed northwards, as aluminium alone is up by 40% since March.
Automakers in India are not in a situation to absorb the hike in input cost due to losses incurred in the first two quarters of the fiscal year following the Covid-19 pandemic.
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