New Delhi: The country’s largest car maker Maruti Suzuki India on Monday said it will hike prices of its vehicles soon, to offset rising input costs and impact of strengthening yen.
The company said it is currently working on by how much and when it could hike the prices of its vehicles.
“In the past few months the input costs have increased significantly. We have been absorbing so far through internal efficiency measure but now we have to pass it on to the consumers,” Maruti Suzuki India managing executive officer (Marketing and Sales) Mayank Pareek told the news agency.
Asked by how much and when the prices would be increased, he said: “We are currently working out on it but it is certain that we have to raise prices.”
He said the company had to take the call as commodity prices have witnessed a steep increase in the past couple of months.
“The price of natural rubber, which used to be Rs100 per kg has gone up to Rs200 per kg. Copper price has increased by 12-15% and steel has also seen a similar increase,” Pareek said.
Moreover, the yen versus dollar equation continues to be adverse with the Japanese currency gaining. These seems to be no softening of these factors, he added.
Over the past few weeks yen has been appreciating against a weak dollar and hovered around just above the 80 yen mark for a dollar.
Already, General Motors India and Hyundai Motor India Ltd have said they would be hiking prices by up to 2% by January 2011.