Maruti Suzuki announced on Monday that it will be raising prices on all of its models by approximately 1.1% starting January 16th. The company had previously announced in December 2022 its intention to increase prices in January due to increased cost pressures driven by overall inflation and recent regulatory requirements.
The company stated in a previous statement that, “while the company makes maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price increase.”
Auto companies have been regularly increasing prices over the past few years due to rising input costs.
Research analyst at Prabhudas Lilladher, Mansi Lall, stated that “the price hikes that auto companies have done is a huge jump for buyers in lower-to-middle income brackets.”
Factors such as rising interest rates, a uncertain global economic situation, and its potential impact on India in the future, are causing the industry to remain cautious.
Maruti Suzuki India Chairman, R C Bhargava, stated to PTI that “increase in price always has a certain negative impact on sales. But we still do not know how much the prices will go up and what will happen to input cost and foreign exchange. These are uncertainties which will always be there.”
However, Bhargava stated that the domestic car industry has recovered in recent months and the semiconductor shortages are also expected to decrease in 2023.
Bhargava believes that “putting it all together, our estimate would be that next year would probably be a reasonably good year for the industry. I think we should do at least as well if not better than 2022.”
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