Maruti Suzuki informed the stock exchanges on Monday that it is going to increase the prices of its models due to an increase in various input costs. However, it did not elaborate on which models are going to be impacted, and by how much. This is the second such hike for this year.
“Over the past year, the cost of company's vehicles has been adversely impacted due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in April 2021. This price increase shall vary for different models,” it said.
The company had increased prices in January this year, again due to an increase in input costs. At the time, it said that price changes were up to Rs 34,000 across models, and it came into effect on January 18, 2021. At the end of December 2020, Maruti had said it had become imperative for the company “to pass on some impact of the above additional cost [increase in input cost] to customers through a price increase in January 2021”.
Maruti, however, was not the only automobile major to hike prices. Nearly every automobile company announced a hike in prices from January 2021 due to rising input costs.
For the month of February, Maruti Suzuki reported a growth of 11.8% in its overall sales on a year-on-year basis.
Earlier this month, the auto industry body Society of Indian Automobile Manufacturers said that labour issues at steel company Pocso will impact the industry.
"Disruptions in supplies from Posco Maharashtra Steel has resulted in non-availability of steel for some of the major Auto OEMs," Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon said in a statement.
According to PTI, companies including Maruti Suzuki, Hyundai Motor, Kia Motors, Tata Motors and Mahindra & Mahindra source steel from the Posco plant.