Maruti Suzuki hints at price hike for models: Here's why
What's the story
Maruti Suzuki, a leading automaker in India, is expected to announce a price hike soon due to the ongoing Red Sea crisis. The Israel-Hamas conflict has disrupted the automotive supply chain, causing logistical challenges for the company. Maruti Suzuki's Executive Officer (Corporate Affairs), Rahul Bharti, stated during an analyst call that the price increase might be a result of risk or rerouting of vessels, however, it shouldn't be significant.
Problem
Logistical challenges faced by Maruti Suzuki
Bharti also mentioned that the Red Sea crisis might affect lead times for dispatches and create uncertainty in vessels picking up consignments. However, he assured that Maruti Suzuki's overseas shipments would not be significantly impacted. The company is a major exporter of passenger vehicles, with around 2.7 lakh made-in-India vehicles shipped worldwide in 2023. Their goal is to export at least 7.5 lakh cars by the end of the decade.
Effort
Preparations for EV production and export
In addition to addressing the Red Sea crisis, Bharti revealed that the firm plans to start manufacturing its first battery electric vehicle (EV) in 2024. The mid-sized SUV will be based on the eVX concept showcased at Auto Expo 2023 and Bharat Global Mobility Expo 2024. The EV will be designed for both domestic and international markets, including Japan and Europe, and boasts a range of approximately 550km per charge.
Target
Company hopeful of positive reception
Regarding the upcoming EV, Bharti said, "We have taken care of customers' range anxiety extremely well. It will be a high-spec vehicle. We are hopeful that the customers will receive it well." This statement highlights Maruti Suzuki's commitment to addressing consumer concerns and delivering a quality product that meets the needs of both domestic and international markets.