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Maruti Suzuki Hikes Vehicle Prices by Up to ₹10,000

January 11, 2019 06:08 AM

COURTESY ET JAN 11

Maruti Suzuki Hikes Vehicle Prices by Up to ₹10,000
Higher input costs and forex swings weigh on automaker; revised prices to be effective from Jan 10
Our Bureau

New Delhi

: The country’s largest carmaker Maruti Suzuki on Thursday said it is raising prices across its range of vehicles by up to ₹10,000 due to higher commodity costs and adverse foreign exchange situation.


“Maruti Suzuki India on Thursday announced a price change for select models owing to increase in commodity prices and foreign exchange rates etc,” the company said in a statement. The revised prices will come into effect from January 10, 2019.

The company had last month announced its intention to raise vehicle prices in the new year, but didn’t talk about the quantum of increase.

Several other automakers have either increased prices or are in the process of doing so. Home-grown auto major Tata Motors has raised prices by up to ₹40,000 (depending on the model and the city) from January 1 citing rising input costs.

Toyota Kirloskar Motor, the local unit of Japan’s Toyota Motor, said it has raised prices by up to 4% from January 1. Ford India, too, has increased prices across its portfolio in the range of 1-3%. “Prices of Ford India’s vehicles were increased between 1% and 3% on January 1, 2019. The price change was necessitated by rising input costs and fluctuations in exchange rate,” Ford India said in response to a query.

Most automakers tend to raise prices towards the end of the year to help boost sales, said industry experts. Customers usually hesitate to buy vehicles in December to avoid the old-year tag. With vehicle makers struggling to grow volumes in recent months due to increase in fuel costs, interest rates and upfront insurance costs, discounts, too, were at a record high last month. This helped draw in customers and push up retail sales.

Inventory levels of passenger vehicles have since stabilised at 35-40 days. Ashish Kale, president, Federation of Automobile Dealers Association (FADA), said, “Passenger vehicle inventory has come down to normal levels. Consumer sentiments have started improving. We have seen better than expected traffic at showrooms last two weeks and hope to close the fiscal year on a positive note.”

Passenger vehicle sales in the domestic market declined year-on-year for three months through September, before rising 1.55% in October. In November, too, passenger vehicle sales had dropped by 3.43% to 266,000 units

 
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