Automobile major Maruti Suzuki will increase vehicle prices from January 2020. According to the company, the price increase is necessitated on account of increase in input cost.
“Hence, it has become imperative for the Company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020. This price increase shall vary for different models,” the company said in a filing with the stock exchanges.
Maruti sells both entry-level cars and cars in the premium range — such as Alto and XL6. The prices vary from Rs 2.89 lakh to Rs 11.47 lakh (ex-showroom Delhi).
Maruti Suzuki India reported a drop of 39.4% in its net profit in its second quarter earnings
The company's net profit for the quarter fell to Rs 1,358.6 crore compared to the same period the previous year, largely on account of lower sales volume, higher sales promotion expenses and higher depreciation expenses.
However, cost reduction efforts, higher fair value gains on invested surplus and reduction in corporate tax rate aided the company to offset some of the impact.
Besides, the company's net sales declined by 25.2% to Rs 16,120.4 crore from Rs 21,551.9 crore reported for the same period during the previous year.
"The results of the company for the quarter (July-September) and half year (April-September) FY 2019-20 have to be viewed in the context of exceptionally weak demand environment," the automobile major said in a statement.
"This year, the automobile industry has seen a significant decline in sales owing to several factors. One of the main factors is an increase in the cost of acquisition of the car due to various reasons coming together like implementation of more stringent safety and emission (BS6) norms, increase in vehicle insurance expenses and hike in road taxes in many states."
With IANS inputs