New Delhi, August 1: Maruti Suzuki India has announced to hike prices of its vehicles across models this month in order to offset the negative impacts of rising commodity costs. The foreign exchange rate has also had an adverse effect on the company. Also Read - Delhi Police Arrests PFI Member for Spreading ‘False Propaganda’ During Anti-CAA Protests
With the rising fuel prices, the logistics costs have increased. Therefore the prices may vary depending on the model. Maruti Suzuki India Senior Executive Director (Marketing and Sales) R S Kalsi told PTI, “This question has been coming for quite some time. We have been analysing the adverse movement of commodity prices — going towards the higher side.” Also Read - Two New Cases of Coronavirus Confirmed in Delhi And Telangana, Says Centre
He further said, “Also the foreign exchange rate has been impacting us adversely. The fuel prices too have increased, adding to the logistics costs.” The company cannot absorb the full impact any longer. Also Read - Mahindra & Mahindra Auto Sales Plunge 42% to 32,476 Units in February
“So it is now imperative for us to pass on some impact of the above factors to the customers through a price increase. This will happen across the range of models in August itself,” added Kalsi.
When asked about the quantum of hike, he said, “We are working on it. It will vary depending on the models.” Stating that the company’s finance team is currently working out the details, Kalsi said, “It is difficult to give any range of the price hike till the finance team finalises it. We are working on it and the moment we get clarity on it, we will hike the prices accordingly.”
Currently, Maruti Suzuki sells a range of vehicles from entry-level Alto 800 with price starting at Rs 2.51 lakh to mid-sized sedan Ciaz tagged at Rs 11.51 lakh in ex-showroom located in Delhi.
Citing rising input costs, companies like Mahindra & Mahindra and Tata Motors have also decided to increase the price from August.
(With PTI inputs)