Maruti Suzuki is the biggest & most selling brand in India in the automobile industry. Now the most significant car manufacturer is preparing for a price hike throughout the range of products. Read on to find out why the most budget-friendly car manufacturer in the country is increasing prices across the board
Rising Input Costs
Since the last year, the company has been facing an adverse effect on the vehicle’s manufacturing costs due to various hikes in input costs. Maruti Suzuki also added: “Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through a price hike.”
Maruti Suzuki has planned to increase the prices of their entire range from Alto to S-Cross priced from ₹3.25-12.77 lakhs (ex-showroom). The price hike will vary individually depending on the respective model from the range. But they have not announced the exact details & figures which will be executed.
Prices Already Hiked by 8.8%
Maruti Suzuki has already hiked the vehicle prices by around 8.8% from January 2021 to March 2022 due to the constant rise in input manufacturing costs. All the manufacturers have been doing the same to cope with the rising costs of metals like steel, aluminium & precious metals such as palladium.
In addition to that, they are also dealing with increasing charges for the freight & transportation system. The electronic components have also not been immune to the price hike, which has further contributed to the rising vehicle prices.
While other companies such as Toyota Kirloskar Motor have hiked their prices by 4% from April to deal with the rising input costs, premium brands such as BMW also hiked their prices by 3.5% starting in April. The same path was followed by other luxury manufacturers such as Mercedes Benz & Audi.
Overall this might not seem like a significant price hike, but it indicates the increasing long-term costs for the manufacturers. While coping with the rising input costs, they also have the supply chain and freight to manage.