Maruti Suzuki is all set to increase the prices of its model range from April 1. The company on Thursday informed in a regulatory filing that prices will be increased for its model range from April in order to partially offset the impact of rising inflation and regulatory requirements. However, the carmaker hasn’t yet revealed the quantum of price hike that it intends to implement.
Maruti Suzuki said that while it 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. “This price hike is in response to general inflationary pressures as well as regulatory requirements like RDE norms which come into effect from April 1,” the company’s Executive Director for Marketing and Sales, Shashank Srivastava said. “We have already made modifications in many of our models to meet with the newer norms.”
Srivastava noted that the company has had seven price hikes since January of 2021 in small amounts. He explained that material cost is 75 % of cost structure for OEMs and inputs costs have been rising. “A single large hike did not happen from most OEMs because there was uncertainty over demand over the past years. We do not want to compromise overall demand in PV (passenger vehicle) industry,” he added.