Maruti Suzuki India, the country’s largest car maker, plans to hike prices of its models in the range of 2-4 per cent from next month in order to partially offset the impact of rising input costs.
“We are planning to increase the prices in the range of 2-4 per cent across our entire range of products from January. It was in October 2013 that we had taken our last price hike,” Maruti Suzuki India (MSI), executive director (marketing and sales) R S Kalsi said.
The company had been absorbing the impact of higher input cost for quite some time now, he said. “We have been absorbing the impact of higher input costs for quite some time now but we did not hike the prices because the market was not doing well.”
Maruti Suzuki India sells a range of vehicles, from Alto 800 to Grand Vitara, priced between Rs 2.37 lakh and Rs 24.6 lakh (ex-showroom, Delhi). Earlier in the day, its rival Hyundai Motor India also announced a price hike by up to Rs 25,000 from next month across its models.
Hyundai Motor India will raise prices of its entire product portfolio in the range of Rs 5,000 to Rs 25,000 from next month, in order to partially offset rising input costs, the company said.
Hyundai, which is the second largest car maker in the country, currently sells 10 models across the Indian market. “In these adverse market conditions, the price increase is necessitated on account of increase in input costs, high cost of imports due to higher rupee depreciation and high cost of sales,” Hyundai Motor India Senior Vice President, Sales and Marketing, Rakesh Srivastava said in a statement.
The company has been absorbing most of the costs but is now constrained to consider price increase across all models in the range of Rs 5,000 to Rs 25,000 which will be effective from January 2015, he added.
Last week, German luxury car maker BMW had announced that it will raise product prices in India by up to 5 per cent with effect from the first week of January. General Motors India had also announced a price hike by up to Rs 20,000 from January in order to partially offset rising input costs.
Last month, Tata Motors and Mahindra & Mahindra had announced to hike prices in the range of 1-2 percent citing higher input costs.