The country’s largest carmaker Maruti Suzuki India (MSI) on Monday said it will increase prices across its model range from next month in order to offset the impact of high input costs. Over the past year, the cost of the company’s vehicles has been impacted adversely due to an increase in various input costs, the auto major said in a regulatory filing.
“Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in April 2021,” it added. The price increase shall vary for different models, it added.
The company however did not share details about the quantum of the price hike it intends to take from next month. On January 18 this year, the automaker had announced to hike prices of select models by up to Rs 34,000 due to a rise in input costs.
MSI sells a range of models from entry-level hatchback to S-CROSS crossover, priced Rs 2.99 and Rs 12.39 (ex-showroom prices Delhi).
As per credit rating agency Cyril, after two years of sluggishness, India’s automobile sector is set to post double-digit growth next fiscal. As per the agency, the growth will be supported by improving the economic situation and personal incomes.
It estimated that passenger vehicles (PVs), two-wheelers (TWs) and commercial vehicles (CVs) are expected to see 23-25 per cent, 18-20 per cent and 34-36 per cent volume growth, respectively, next fiscal, compared with contractions of 3-5 per cent, 12-14 per cent and 19-21 per cent, respectively, in the current fiscal.
“Our analysis of 800 listed companies shows salary cuts made in the first quarter of this fiscal have largely been restored by the manufacturing sector, while the IT sector is continuing to offer raises,” said Pushan Sharma, Associate Director, Crisil Research.
“Consequently, sentiment among urban consumers, who account for a crucial 65 per cent of PV sales and 40 per cent of TW sales, has improved. This, and buoyancy in rural income, augur well.”
Besides, the increase in the cost of acquisition of PVs and TWs including insurance, registration, down-payment, and ex-showroom price next fiscal will be moderate at 3-4 per cent compared with a combined 8-11 per cent rise in fiscals 2020 and 2021.
That, along with new model launches and quest for safe personal transport options will stoke demand for PVs and TWs, Crisil said.
(With inputs from wire agencies)