Maruti Suzuki to raise vehicle prices from April due to rise in input costs
The country's largest carmaker, Maruti Suzuki India has announced on Monday that it will increase the prices of its different car models next month due to a rise in various input costs. This will be the second price hike by the carmaker this year.
The company said that the price increase will vary according to different models. It did not specify by how much it plans to raise prices.
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The Indian auto market had already been dealing with weaker demand and higher costs since the coronavirus pandemic struck the industry last March. Since then, over last few months, auto companies have seen demand return but have also warned about uncertainties ahead. Various carmakers have also increased prices this year to keep up with rising costs.
In January, Maruti had hiked vehicle prices by up to ₹34,000 rupees on some car models, citing a rise in input costs.
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Other car makers that hiked vehicle prices in January include Mahindra and Mahindra that increased prices of its personal and commercial vehicles by 1.9% and Tata Motors that raised prices for its passenger vehicles by up to ₹26,000.
However, a recent study by India Ratings and Research (Ind-Ra) claimed that despite the price hikes and increase in cost of auto fuels, demand for passenger vehicle and two-wheelers have remained undeterred. This trend is being supported by the fact that people are preferring personal mobility mediums instead of public transport systems amid the coronavirus pandemic.
The country's passenger vehicle sales volume has witnessed 18% growth in February as against the same month in 2020. The two-wheeler segment registered 10% YoY growth last month.
The preference for personal vehicles is being seen not just in the home country but also outside. Automakers have seen a rise in export volumes along with domestic sales across the passenger vehicle and two-wheeler segments.