On November 27, Maruti Suzuki announced its intention to raise the prices of its cars in January 2024 due to heightened cost pressures stemming from overall inflation and increased commodity prices.
Read on to find out all the details!
Maruti Suzuki To Increase Prices of Cars By January 2024
In a regulatory filing, the leading car manufacturer in India stated, “The company has planned to increase the prices of its cars in January, 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market.”
Maruti Suzuki clarified that the extent of this price increase would vary across different car models. Despite the company’s efforts to minimize costs and absorb the impact of rising expenses, market conditions may necessitate passing on some of the increased costs to consumers.
In October, Maruti Suzuki achieved its highest-ever monthly sales with 199,217 units, marking a 19 percent year-on-year growth. The automaker had dispatched 167,520 units in October 2022.
Maruti Suzuki Reports Best Ever Domestic Monthly Dispatches in October
Additionally, Maruti Suzuki reported its best-ever domestic monthly dispatches in October at 177,266 units, a 21 percent increase from the year-ago period.
For the second quarter ending September 30, 2023, Maruti Suzuki recorded an 80.3 percent year-on-year surge in standalone net profit, attributing the growth to higher net sales, a decrease in commodity prices, cost reduction efforts, and increased non-operating income. The company’s profit after tax for the same period in the previous year was Rs 2,061.5 crore.
The revenue from operations during this quarter rose by 23.8 percent over the same period last year, reaching Rs 37,062 crore compared to Rs 29,930.8 crore. The New Delhi-based company’s positive financial performance reflects its strategic measures in response to market dynamics and economic factors.
Maruti Suzuki surpassed Mahindra & Mahindra in August to become the top producer of sports utility vehicles (SUVs) in India. Maruti Suzuki and Mahindra and Mahindra saw their passenger vehicle (PV) sales grow by 16.4% and 26%, respectively compared to the same period last year..
