February 18, 2021

Indian & World Live Breaking News Coverage And Updates

Indian & World Live Breaking News Coverage And Updates

Maruti to increase car prices from Jan as raw material gets costlier

Share This :



India’s largest carmaker announced this week that it would increase prices of its vehicles from January.


However, the price rise could be more this time as the cost of raw materials has increased significantly.


“Over the past year, the cost of the company’s vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021,” the company said.


The price hike will vary across models. Maruti’s fleet starts from the entry-level small car Alto and goes up to premium multi-purpose vehicle XL6.


Raw material prices are hardening with the full impact of cumulative increases to be felt in Q3 and Q4 of this financial year. Steel, aluminium, and rubber — key inputs for the auto industry — are all headed northwards. is up 30 per cent in 6 months, is up 40 per cent and up 77 per cent since March.


ALSO READ: Maruti Suzuki starts vehicle financing for Nexa customers on its platform



Automakers also do not have much room left to absorb the hike in input cost because of losses incurred in the first two quarters of the fiscal year following the coronavirus outbreak.


Companies had registered zero sales in April and May due to the lockdown induced by the government to counter the coronavirus pandemic.


While Maruti is the first company to announce a price hike, it is expected that other automakers will follow the same. Maruti has more than 50 per cent share of India’s auto market.


Price hike from the beginning of the year has become an annual exercise is a tactic aimed at enticing customers to buy before the year-end and clear piled up inventories before the start of the next year, when the value would typically suffer from a sharp depreciation.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share This :