Maruti Suzuki to Increase Car Prices in January Amidst Rising Costs and Commodity Pressures

The company stated that prices will vary across models, but it did not disclose the exact amount of the increase.

Maruti Suzuki India Ltd. has decided to hike the prices of its automobiles starting in January, citing mounting cost challenges brought on by rising commodity costs and general inflation. "The company may have to pass on some increase to the market, even though it makes every effort to reduce costs and offset the increase," the release from the company stated on Monday.

The company stated that prices will vary across models, but it did not disclose the exact amount of the increase. Automakers have historically announced price hikes for their vehicles during specific times, such as the days preceding the new year, in an effort to pass on cost increases. Over the following few years, a number of automakers are anticipated to follow Maruti Suzuki's lead.

Although the cost of raw materials has stabilized in recent months, automakers have maintained that their profitability was negatively impacted by an earlier surge in commodity prices that was not fully passed on to customers.

"Most of the RMs (raw materials) have witnessed significant correction in their prices after a sharp increase in 1HFY23," Motilal Oswal stated in a report released last week. "Commodities such as steel, aluminum, rubber, polymer have corrected 10-25% from their peaks."