Many auto majors have already announced the hike in prices of their models and following the price hiking spree it’s now time for India’s largest car maker ‘Maruti Suzuki’ to raise the prices of its entire line up by 2 to 4% from January 2015 and the reason behind this price hike is due to increase in the Input cost.
Maruti Suzuki India sells from Maruti Alto 800 which cost at 2.37 lakh to Grand Vitara which is priced at 24.6 lakh (Ex- showroom Delhi).
R S Kalsi, Executive Director, Marketing and Sales, Maruti Suzuki India (MSI) laid his view on the price hike, “We are planning to increase the prices in the range of 2-4 per cent across our entire range of products from January. It was in October 2013 that we had taken our last price hike.”
He added, “We have been absorbing the impact of higher input costs for quite some time now but we did not hike the prices because the market was not doing well,”
Maruti’s chief competitor the Korean car maker ‘Hyundai’ has announced hike in prices of its entire range of cars from Eon which is retailed at 3.89 lakh to its costliest model Santa Fe which costs between Rs. 25.60 to 28.40 lakh (all prices are ex- showroom Delhi).
This price hike by Hyundai also applies on other models like Santro, i10, Grand i10, Elite i20, Xcent, Verna, Elantra and Sonata range between Rs. 5000 to Rs. 25,000 effective from next month.
Mr. Rakesh Srivastava, Sr. Vice President, Sales and Marketing commented on Price Hike said “In these adverse market conditions, the price increase is necessitated on account of increase in input costs, high cost of imports due to higher rupee depreciation and high cost of sales. We have been absorbing most of the costs but are now constrained to consider price increase across all models in the range of Rs. 5,000 to Rs. 25,000 which will be effective from Jan 2015”.
Recently, German car Giant BMW had announced the rise in prices of its products in India by 5% which will take effect from 1st week of January 2015.
General motors’ has already declared the hike in price by up to Rs. 20,000 starting from January 2015 due high input cost.
Last month, Mahindra and Mahindra and Tata had announced to increase their products price by 1-2% due to higher input costs, While Toyota is in process of raising its price and will announce soon.