Maruti cars will become more costlier as Maruti Suzuki has announced a 1.1% price hike across its models on Monday.
Maruti Suzuki Price Hike
Today, Maruti Suzuki announced an increase in prices across models.
Saying, “An estimated weighted average of increase across models stands at around 1.1%. This indicative figure is calculated using Ex Showroom prices of models in Delhi and will come into effect from 16th January, 2023,” the carmaker said.
The new prices will come into effect from today, as per the company release.
Why Would This Happen?
Apart from Maruti, other car manufacturers including Hyundai, and Tata Motors to luxury brands Audi and Mercedes-Benz have also announced plans to increase prices across their offerings starting this month.
Reportedly, the move is likely to partially offset the impact of rising costs.
Prior to this they said that the costs would increase through 2022 amid a shortage of semiconductors, among other factors.
It appears that prices are now going up as car sales in India revive after disruptions caused by COVID-19 and shortages of components including semiconductors.
Expanding Vehicle Production Capacities
In the meantime, the vehicle manufacturers are expanding vehicle production capacities now.
That being said, Maruti Suzuki is also building a new factory in Haryana.
While talking about the different models, Maruti Suzuki said that Baleno, Celerio, Dzire, Ignis, Swift, and WagonR are among the cars for which price increases will differ based on the model.
During December, Maruti Suzuki had informed about the price hike.
In a communication to stock exchanges on 2nd December, Maruti said, “The company continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements. 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. The company has planned this price increase in January, 2023 which shall vary across models,”.
Maruti Suzuki’s third quarter results for the period ending 31st December, 2022, is set to be announced on 24 January.
In the meantime, the company’s shares were trading 0.45% lower at Rs8,413 in a flattish Mumbai market in today’s trading session.
