Maruti Suzuki will increase vehicle prices across categories from January 2020 to pass on the rise in input costs, a move which could boost demand in December but impact sales thereafter. The carmaker did not reveal the extent of price increase but said it will vary for different models.
Sources said other manufacturers including Tata Motors, Hyundai and Mahindra & Mahindra (M&M) are also likely to announce a price hike when they roll out the entire range of BS VI complaint models.
Maruti Suzuki said over the past year the cost of vehicles has been impacted adversely due to increase in various input costs.
“It has become imperative to pass on some impact of the additional cost to customers through a price increase across various models,” it said in a regulatory filing.
M&M on Tuesday launched the BS VI version of its XUV300 compact SUV priced between Rs 8.30 lakh and Rs 11.84 lakh. When contacted, a Mahindra spokesperson said the company is contemplating a price hike during early January. “However, a final decision will be taken closer to the end of the current month,” the spokesperson said. Tata Motors and Hyundai did not reply till the press time.
Over the last one year, car prices have jumped around 15 per cent on account of rise in insurance premium and safety norms, resulting in decade low sales virtually every month. —FE