Maruti Suzuki will raise prices of its vehicles during the July-September quarter due to high input costs. In a regulatory filing, the company said that over the past year the cost of the company's vehicles continued to be 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 rise," it said.
The company added that the price rise has been planned in the second quarter of this fiscal and the increase shall vary for different models. It had earlier raised prices for different car models in April. At the time, the weighted average price increase in Ex Showroom Prices (Delhi) across models was 1.6%.
This is the third such increase across Maruti‚Äôs products, with the company having increasing prices in January this year as well, also due to rising input costs. At the time earlier this year, Maruti had said that the price changes were up to Rs 34,000 across models, and was effective from January 18, 2021.
At the end of December 2020, the carmaker had said that it had become imperative for the company ‚Äúto pass on some impact of the above additional cost (increase in input cost) to customers through a price increase in January 2021‚ÄĚ.
Several vehicle makers have raised prices amid the pandemic as input costs have increased. Further, the decline in sales amid the pandemic has also impacted the industry.
However, with the situation easing across various states, restrictions are likely to ease and automakers would move back to normalising the operations.
Around 3.00 pm, shares of the company on the BSE were at Rs 6,916.95, lower by Rs 41.75 or 0.6% from its previous close. It touched an intra-day high of Rs 6,924.05 and low of Rs 6,842.10.
It reported total sales of 46,555 units in May 2021. The company had sold 159,691 vehicles during April 2021 and 18,539 units in 2019. "In May 2021, the Company shut production from 1 to 16 so as to divert oxygen from industrial use for medical purposes," the company had said in a statement.
"In May 2020, the company witnessed production disruption owing to lockdowns. Since neither of the two months had normal production, the sales volume of May 2021 are not comparable with May 2020."