Maruti Suzuki India To Hike Prices In January Due To Increased Cost Pressure

Maruti Suzuki said this price increase of vehicles shall vary across models

Maruti Suzuki did not yet specify the quantum of the proposed price hike.

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Citing cost pressure driven by overall inflation and increased commodity rates, home-grown carmaker Marti Suzuki India on Monday said it plans to raise prices of its vehicles in January 2024. Maruti, which sells a range of vehicles from entry-level small car Alto to multi-utility vehicle Invicto, priced between Rs 3.54 lakh and Rs 28.42 lakh (ex-showroom Delhi), did not yet specify the quantum of the proposed price hike.

In a regulatory filing, Maruti Suzuki India said, "The company has planned to increase the prices of its cars in January, 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices." It also said, "While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market. This price increase shall vary across models."

The car company posted a massive increase in its net profit on a year-on-year (YoY) basis in its second quarter (Q2) earnings in October. It logged a net profit of Rs 3,716.5 crore for the September quarter in the current financial year (FY24) against a net profit of Rs 2,061.5 crore in the second quarter of the previous fiscal year (FY23). This marked an increase of 80 per cent in the company’s net profit on a YoY basis.

This increase in profit was attributed to a surge in net sales, softer commodity prices, cost reduction efforts, and increased non-operating income. However, these factors were partly offset by a higher depreciation and increased sales promotion expenses, the automaker said in an exchange filing. 

In October, Maruti logged its highest-ever monthly sales at 1,99,217 units, a 19 per cent YoY growth. It had dispatched 1,67,520 units in October 2022.

Tata Motors

Tata Motors on Monday said it is also considering increasing prices of its passenger and electric vehicles in January 2024. The company, which sells a range of passenger vehicles starting with hatchback Tiago to premium SUV Safari priced between Rs 5.6 lakh and Rs 25.94 lakh, however, did not specify the quantum of the proposed hike. "We are considering a price hike across our passenger and electric vehicles in January 2024. The extent of the hike and exact details will be announced in a few weeks," a Tata Motors spokesperson said.

Audi

Earlier in the day, German luxury car maker Audi said it will hike prices of its vehicles in India by up to 2 per cent from January next year, citing rising input and operational costs. The price hike will be effective from January 1, 2024 and will be across the model range, Audi India said in a statement.