This is the third price hike Maruti Suzuki has introduced in 2021. The carmaker previously raised prices in April and January this year.
Maruti Suzuki India, India’s largest automaker, announced a price increase of 1.9 percent in its passenger vehicle portfolio. This will take effect immediately. In a regulatory filing, Maruti Suzuki India (MSI) stated that it had decided to increase prices across its model lines due to an increased cost of manufacturing. This is the third price hike MSI has implemented in 2021. The carmaker previously raised prices in April and January this year, totaling around 3.5 percent.
MSI stated last month that a price increase was necessary to maintain its profitability in the face of a sharp rise in commodity prices. Shashank Srivastava, Senior Executive Director (Sales & Marketing) at MSI, stated that there was only one option. He suggested that the company increase its prices to offset high commodity costs. According to him, steel prices have risen from Rs 38 per kilogram last year to Rs65 per kilogram in May-June. Copper prices have also doubled, from USD 5,200/tonne to USD 10,000/tonne.
The transition to stricter emission standards has led to an increase in demand for precious metals. Srivastava stated that precious metals such as rhodium have risen from Rs 18,000 per gram in May 2020 to Rs 64,000.00 per gram by July.
Maruti Suzuki was in the news late last week when it announced a recall for over 1.81 lakh vehicles to replace a potentially faulty motor-generator unit (MGU) – one of the most significant voluntary recalls in the country. The company is also gearing up to launch the second-generation Maruti Suzuki Celerio in the coming months.