Maruti Suzuki India will increase prices of select models by up to Rs 20,000 from September, citing rising input and operational costs, in a move that will make some of the country’s most popular passenger vehicles more expensive. The company said the extent of the increase would vary depending on the model and variant.
The country's largest passenger vehicle manufacturer said it had been making efforts to optimise costs and minimise the impact on customers, but a portion of the increase in expenses would have to be passed on to buyers. The latest revision comes as automobile manufacturers contend with fluctuations in commodity prices, logistics expenses and other costs associated with vehicle production.
Prices to vary across models
Maruti Suzuki has not announced a uniform increase across its portfolio, with the maximum hike capped at Rs 20,000. The actual revision will depend on the particular model and variant. The company's portfolio stretches from entry-level hatchbacks to sedans, utility vehicles and premium offerings sold through its Arena and Nexa networks.
The price increase could influence buyers in India's highly price-sensitive passenger vehicle market, particularly in the small-car segment where relatively modest changes in acquisition costs can affect purchase decisions. Maruti Suzuki commands a significant share of the domestic passenger vehicle market and sells models including the Alto K10, WagonR, Swift, Dzire, Brezza, Ertiga, Fronx and Grand Vitara.
Cost pressures prompt revision
Automakers periodically revise vehicle prices to compensate for increases in raw-material, component, transportation and regulatory costs. Manufacturers have also been investing heavily in new technologies and upgrading their portfolios as India's automobile market moves towards stricter emission and safety standards and greater electrification.
Maruti Suzuki has been expanding its presence in the sport utility vehicle segment while simultaneously defending its traditional strength in hatchbacks and compact cars. The company has also stepped up its electrification strategy as competition intensifies across the Indian passenger vehicle market.
The September increase means customers planning to purchase affected models will have to factor in a higher ex-showroom price, although the final impact will depend on the model, variant and applicable revision. The company said the price adjustment was necessary to partially offset the continuing increase in costs while attempting to keep the burden on customers to a minimum.