MARUTI TO RAISE PRICES OF SELECT MODELS BY UP TO ₹20,000

Maruti Suzuki India will increase prices of select car models by up to ₹20,000 from September, the automaker said on Monday, marking its third price hike since May. Unlike the previous two revisions, which were applicable across the company’s entire portfolio, the latest increase will be restricted to select models and variants. Maruti Suzuki attributed the move to persistent inflationary pressures and elevated input costs. The company has not yet disclosed the specific models and variants that will see a price revision. Maruti Suzuki announced its first price hike of the year on May 21, increasing prices across its model range by up to ₹30,000 from June. At the time, the company said it had taken several cost-reduction measures to absorb rising expenses but would need to pass on part of the increase to customers as input costs remained elevated. The automaker implemented a second portfolio-wide price increase of up to ₹30,000 in August. In a July exchange filing, Maruti said the extent of the increase would vary across models. The latest pricing action follows a warning issued in April by Partho Banerjee, Senior Executive Officer, Marketing and Sales, who said rising commodity prices could lead to higher vehicle prices. While the company said it had not experienced supply disruptions, the conflict in West Asia had pushed up the prices of oil, gas and metals used in automobile manufacturing. The impact of higher input costs was also visible in Maruti Suzuki’s June-quarter financial results. Net sales increased 36% year-on-year to ₹49,959 crore, while net profit declined 10.8% to ₹3,352 crore. The company attributed the fall in profitability to higher material costs, which were further aggravated by the West Asia conflict.