BackMaruti to raise prices next month to pass on rise in input costs
Maruti said the price increase shall vary for different modelsThe announcement of a price hike comes even as companies, including Maruti, have struggled to sell their products
PremiumMaruti Suzuki India Limited today said it would increase prices of its various models in January to pass on the rise in input costs. The company did not specify the quantum of the price hike or its effective date. The announcement of a price hike comes even as companies, including Maruti, have struggled to sell their products, owing to various reasons. Maruti’s total monthly wholesale sales in November were 3.2% lower from a year ago at 141,400 units.
“The cost of company's vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020. This price increase shall vary for different models," the company in a BSE notice.
At 1205 pm, Maruti shares traded 0.3% higher at ₹7,161 in a weak market. The BSE Sensex was down 0.5% at 40,609.59.
Worldover, the automobile industry, particularly car manufacturing, is undergoing a major shift due to both regulatory and technology changes, in the process holding back consumers from making purchases.
With rising concerns over climate change, many counties including have set ambitious plans to move to electric vehicles altogether. While India hasn’t yet set a deadline for this, it will move to cleaner petrol and diesel vehicles and fuel from April 2020, conforming to Bharat Stage-VI (BS-VI) standards on emission. Many manufacturers, Indian and foreign, plan to stop making diesel vehicles in the near future, a move away from a fuel considered dirty.
Buyers, in anticipation of the new BS-VI norms, are reluctant to buy cars immediately, on fear of regulatory changes and the cars thus having a shorter run on the road. Many of them are also discouraged by the ever reducing prospects of a second hand vehicle in a changed environment that favours cars compliant with new norms.
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