Facing rising input costs and stagnant sales, Maruti Suzuki, India’s leading passenger car makers planning to increase the prices of its products in January 2015. According to statements made by officials from the company, it is expected that the prices will be hiked by around 2 – 4 per cent. This means that there will be a minimum hike of Rs. 5,000 – Rs. 20,000 across the range of cars offered by Maruti in India. Maruti currently offers 13 models in India ranging from the entry-level hatchback Alto 800 to the flagship sedan Ciaz.
Other car manufacturers have or are expected to announce price hikes too. The second largest car manufacturer in India, Hyundai, has already announced that it will hike prices of its cars by up to Rs. 25,000 starting January 2015. Other companies who have announced price hikes include luxury car manufacturer BMW, who announced a 5 per cent hike in the prices of their cars starting the new year. GM subsidiary Chevrolet also announced a hike of up to Rs. 20,000 as a partial measure to reduce loses. Homegrown manufacturers Tata and Mahindra have also announced hikes of around 1 – 2 per cent.
More manufacturers are expected to announce price hikes soon. excise duty sops introduced by the government of India earlier this year are set to expire by the end of December 2014, and it does not seem like it will be extended. This might lead to even more price hikes being announced across the industry.
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