Maruti Suzuki India, India's largest carmaker, said on Monday it will increase vehicle prices in January 2024, citing cost pressures due to the overall inflationary environment and rising raw material prices.
The company, which sells a range of vehicles ranging from entry-level compact car Alto to multi-purpose vehicle Invicto, is priced between Rs 3.54 lakh and Rs 28.42 lakh (ex-showroom Delhi). Propose a price increase.
In an interaction with PTI, Maruti Suzuki India (MSI) Chief Executive Officer (Marketing and Sales) Shashank Srivastava said the price hike will vary across models and for some, it will be a “significant” hike.
“Inflationary pressures are everywhere, including volatility in commodities, which is why we decided to raise prices in January,” he said.
MSI last raised prices by 0.8% in April this year. In the last fiscal year, a total increase of 2.4% was recorded.
“Currently, we have no choice but to increase prices. We are yet to know the exact magnitude of the price increase,” Srivastava said.
MSI had earlier said in a regulatory filing that the company plans to increase the prices of its vehicles in January 2024 due to increasing cost pressure due to overall inflation and rising raw material prices.
“Although the company is making every effort to reduce costs and offset the increases, we may have to pass on some of the increases to the market,” he added. “These price increases will vary by model.”
German luxury carmaker Audi has said it will increase prices of its vehicles in India by up to 2% from January next year, citing rising input and operating costs.
The price increase will be effective from January 1, 2024 and will be applicable across the entire model range, Audi India said in a statement.
When contacted, Mercedes-Benz India mentioned that it is also considering a price hike from January.
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