Maruti Suzuki India on Monday announced a 1.9% increase in prices of almost its entire range of vehicles.
“The company announced a price change for select models owing to increase in various input costs,” Maruti Suzuki said in a filing with the exchange. “The weighted average price increase in ex-showroom prices (Delhi) across select models is 1.9%,” the company added.
The move would result in an increase of about ₹4,000-₹21,000 depending on the model. This is the company’s fourth price rise this year due to increase in input costs. The collective price rise along with the earlier increases in January, April and July this year is about 5%.
Senior executive director (sales and marketing) Shashank Srivastava said that price hike was usually the last option that the company undertakes, but the company this time could not absorb the significant increase in prices.
He added that steel prices had gone up from ₹38,000 a tonne in May 2020 to ₹65,000 a tonne in June this year. Similarly, copper prices had doubled from $5,200 a tonne to $10,200 a tonne, and for precious metals like rhodium prices from ₹18,000 a gram to ₹64,300 a gram.
He, however, added that the material costs were expected to soften October-December quarter onwards.
Source: Read Full Article