India’s largest car manufacturer Maruti Suzuki has announced that it is planning to increase prices of different models from January 2022 due to rising input costs. The automobile major said that the cost of the company’s vehicles continues to be badly impacted over the past year due to an increase in input costs, which has compelled it to pass on some of the impact to the customers through a price hike.
Separately, the company also announced an increase in prices of all non-cargo variants of its Eeco van on account of the introduction of passenger airbags. Accordingly, shares of the automaker settled 3.3% higher on Wednesday, December 1 from the previous close at Rs 7,300, exchange data showed. On Tuesday, the company raised the prices of the Eeco variants by Rs 8,000 per unit. Earlier, the carmaker had announced a price hike across models in September 2021 due to higher input costs.
Semiconductor shortages continued to subdue Maruti Suzuki's production and sales in November. Total sales last month fell on a year-on-year basis to 1,39,184 units from 1,53,223 units during the same period of the corresponding year. Besides, domestic sales were 1,13,017 units, and sales to other original equipment manufacturers stood at 4,774 units.
The automaker exported 21,393 units in November, which is its highest ever in a month, it said. "The shortage of electronic components had a minor impact on the production of vehicles during the month. The shortage primarily affected the production of vehicles sold in the domestic market, however, the company took all possible measures to minimise the impact,” the company said in a statement.
Meanwhile, owing to electronic components supply constraints, the company is expecting an adverse impact on vehicle production in Haryana and Gujarat plants in December 2021. "Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of December 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat," the company stated.
With IANS inputs