Maruti Suzuki hikes prices by up to Rs 22,500 to offset rise in input costs

The new prices are effective from Friday

Maruti Suzuki India Limited, in a regulatory filing, has announced a price hike for select models in its portfolio.

“This is to inform you that the Company is increasing the price for select models owing to increase in various input costs. The weighted average price increase in ex-showroom prices (Delhi) across models is 1.6 per cent,” India’s largest carmaker said in a regulatory filing.

“The new prices are effective from April 16, 2021,” it added.

This means that the prices will increase up to Rs 22,500 depending on the model. The Celerio and Swift will not see a price hike.

Read more: Maruti Suzuki production rises significantly to 1,72,433 units in March

In an earlier interview, Shashank Srivastava, Executive Director, Marketing and Sales, Maruti Suzuki India, had told Deccan Herald: “When we shifted to BS-VI, we partly passed on the cost to the consumer and did not increase the price significantly. Palladium and Rhodium are metals used in BS-VI vehicles and countries like South Africa produce it. But their mines were affected due to the pandemic. The demand for these metals comes from the auto sectors mostly and as a result, the prices in the international market have gone up,” said Srivastava, adding that the cost of steel has also gone up.

Asked if price hike is going to affect demand, particularly as people want to have their own transport in times of the pandemic, he said: “As an economic principle, demand will be affected. At the same time, business principles indicate that slight demand will stay. The cost has gone up, but we have to take care of the demand also. We have to strike the balance by deciding how much the price should be increased.”