Maruti Suzuki hikes prices of all its cars in India
What's the story
Maruti Suzuki has announced a 0.45% price increase for all its models, effective from today. The company attributes this hike to the rising costs caused by inflation and higher commodity prices. Maruti Suzuki had previously announced its intention to raise prices in November. At the time, the automaker had said that while it strives to minimize costs and offset increases, some of the burden may need to be passed on to the buyer.
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Other automakers followed suit this month
Other car manufacturers have also raised their prices. Tata Motors declared a price hike for its commercial vehicle models starting January 2024 to counterbalance the lingering impact of past input costs. Tata's commercial range includes popular models like Ace, Intra, and Winger. Mahindra & Mahindra, Hyundai, SKODA, Honda Cars India, and Audi have also increased the prices of their products. Analysts predict that passenger vehicle sales will experience mid-single-digit growth this fiscal year and slow down further in the next.
Insights
Maruti Suzuki's sales performance droppped in December
In December 2023, Maruti Suzuki India saw a 1.28% drop in overall sales, with 1,37,551 units sold compared to 1,39,347 units in the same month the previous year. Total domestic sales, including passenger cars, commercial vehicles, and third-party supplies, decreased by 5.86% with 1,10,667 units sold this month compared to 1,17,551 units in the same period last year. Sales of small cars like the Alto and Celerio were down 29% in December compared to the previous year.