Citing rising input costs, Maruti Suzuki India has announced to increase vehicle prices across its model line-up from September 2021. The quantum of price hike has not been specified in the automobile giant's regulatory filing to the Bombay Stock Exchange (BSE).
“With reference to our earlier communications with respect to price increase, we wish to inform you that over the past year the cost of Company’s vehicles continue to be adversely impacted due to increase in various input costs. Hence, it has become imperative to pass on some of the additional cost to the customers through a price rise. The price rise has been planned across models in September 2021,” Maruti Suzuki said in the filing.
Maruti Suzuki had raised car prices over input cost in April and January also. The automaker, in a June 2021 regulatory filing, had announced to BSE that it will hike car prices in India in the second quarter (Q2) of Financial Year 2021-22.
Maruti Suzuki announced a weighted average increase of 1.6 per cent (ex-showroom) across models on April 16, while January saw the automaker raising prices of select models by around INR 34,000.
Maruti Suzuki's 14 models range from entry-level Alto to S-CROSS priced between Rs 2.99 lakh to Rs 12.39 lakh (ex-showroom prices Delhi), respectively. 5 of these models are available via Maruti Suzuki Nexa showrooms.
The Indian automotive industry (including component manufacturing) is expected to reach INR16.16-18.18 trillion by 2026 and is expected to register strong growth in 2021-22, as the economy recovers from COVID-19 pandemic, according to Indian Brand Equity Foundation.
India was the fifth-largest auto market in 2020, with sale of ~3.49 million units combined sold in the passenger and commercial vehicles categories.
Domestic automobiles production increased at 2.36% CAGR between FY16-20 with 26.36 million vehicles being manufactured in the country in FY20. Overall, domestic automobiles sales increased at 1.29% CAGR between FY16-FY20 with 21.55 million vehicles being sold in FY20. In FY21, passenger vehicles sales reached 27.11 lakhs units, while commercial vehicles sales crossed 5.69 lakhs units.