InvestorQ : Is it true that Maruti Suzuki is planning to hike the prices of its cars?
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Is it true that Maruti Suzuki is planning to hike the prices of its cars?

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9 months ago
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One of the big trends in recent times has been the sharp spike in various metal and alloy prices which has made cars more expensive to manufacture. This is a global problem and Indian carmakers are no different. As a result, to compensate for the sharp rise in input costs, Maruti Suzuki proposes to increase prices of vehicles effective from April 2021.

This trend has been more pronounced in the last one year. During this period, Maruti has been negatively impacted due to a spike in an array of input costs. The only thing that Maruti has confirmed is that the price hike would happen and that the price increase would vary across different models. Maruti has not divulged specific details of the price hike.

Maruti is India’s largest passenger vehicle manufacturer by a margin and has a market share of over 50% in the passenger car market. It also enjoys the largest network of over 4000 outlets that are spread across 1989 towns and cities. Fortunately, the auto demand has picked up post the October festival season in 2020 despite the lag effect of COVID-19. However, rising input costs of metals remain a challenge and passing on may be the answer.

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