Maruti Suzuki may hike car prices again soon. Here's why
Maruti Suzuki like many other manufacturing companies is facing some challenges due to the crisis in the Red Sea area due to the conflicts in the region. The traffic disruption in the Red Sea region due to the militant attacks on merchant ships is forcing the companies to reroute shipments as they face delays and higher costs. Maruti Suzuki being one of the affected companies due to the crisis is facing logistical challenges, which may force the automaker to hike prices of its passenger vehicles in the coming months, hinted Rahul Bharti, Maruti's investor relations chief.
Reuters has reported that Maruti Suzuki is expecting a cost increase in production, which may be reflected in the automaker's passenger vehicle prices as well. Bharti didn't specify the extent of the price hike that would be applicable to its passenger vehicles. However, he reportedly stated that the price hike should not be significant. Besides that, the crisis may result in a higher waiting period as well.
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Maruti Suzuki announced a price hike late last month, which became applicable to its entire passenger vehicle range from January 2024. The car manufacturer attributed the move of price hike to the higher production costs due to increasing raw material costs and inflation. Not only Maruti Suzuki, but several other carmakers including Tata Motors, Mahindra, and Honda among others announced price hikes for their respective passenger vehicles.
Meanwhile, Maruti Suzuki lost its title of most valuable carmaker in India to Tata Motors. The automaker has claimed that its third-quarter profit in this financial year surged 33 per cent, thanks to the strong demand for its SUVs. The contribution of pricier and margin-boosting utility vehicles including SUVs and MPVs to the brand's total domestic passenger vehicle sales increased to nearly 39 per cent in the last quarter from about 24 per cent registered in the corresponding quarter of last financial year. Meanwhile, sales of small cars, including the Alto and Ignis, declined significantly.
