In a filing to the bourses on Friday, Maruti Suzuki said it continues to witness increased cost pressure due to inflation and recent regulatory requirements. The automaker said while it is continuing to make maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price hike.
The company has planned the price increase in January 2023 which shall vary across models, Maruti Suzuki said without specifying the exact quantum of the increase.
In a media intercation Thirsday, Maruti Suzuki India Senior Executive Officer (marketing & sales) Shashank Srivastava said while commodity prices have softened of late, they are still higher when compared with costs incurred two years back.
“The price hikes we have undertaken previously were not in line with the rise we have seen in raw material costs the last two years. Besides, there is general inflationary pressure on every input cost. whether it is energy or material or manpower cost”, said Srivastava.
Additionally, the company would have to upgrade its models to be compliant with the second phase of BS-VI emission norms that kick in from April 2023.
Maruti Suzuki had last increased vehicle prices by around 1.3% in April 2022.
In a separate filing to bourses, the company said its production in November rose by 5% to 1,52,786 units as compared with 1,45,560 units in the same month last year. The company rolled out 1,51,326 passenger vehicles last month as against 1,42,025 units in November 2021.
Shares of the company declined by 1.58% to close at Rs 8,815.10 on BSE.
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