Maruti Suzuki announces a car price increase effective January 2024, citing rising costs as the driving factor behind the decision
Maruti Suzuki India Ltd., the country's largest passenger car manufacturer, has disclosed its intention to raise vehicle prices from January 2024. The company cites the price hike as a response to increased cost pressures resulting from overall inflation and heightened commodity prices.
"The Company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. While the company makes maximum efforts to reduce costs and offset the increase, it may have to pass on some increase to the market," the Autocar manufacturer said in a note on 27 November.
However, the company did not specify the extent of the impending price increase. Previously, on April 1st of this year, Maruti Suzuki raised the prices of its vehicles across all models.
It is worth noting that the luxury car maker Audi had also stated that it would raise prices of its vehicles in India by up to 2 per cent from January 2024, owing to increased input and operational costs. The price adjustment will be applicable across the entire model range and will take effect on January 1, 2024, according to Audi India.
In Q2FY24, Maruti Suzuki India revealed a standalone net profit of Rs 3,716.5 crore. This marked a substantial increase of 80.28 per cent compared to the corresponding quarter of the previous year, where the net profit stood at Rs 2,061.5 crore. While the revenue of the automotive industry leader witnessed a YoY growth of 23.8 per cent, reaching Rs37,062.1 crore compared to Rs 29,930.8 crore.