Days after auto major Mahindra & Mahindra and Tata Motors announced hike in car prices from August, country's largest carmaker, Maruti Suzuki, is all set to join the queue. On Wednesday, the car manufacturer said it will hike prices of its vehicles across models this month.
The increase in prices is aimed to offset adverse impact of rise in commodity costs, foreign exchange fluctuations and fuel price increases, the company said. Maruti Suzuki is currently working out the details of the amount of the price increase. Its peers, Mahindra and Tata Motors had announced a price hike of up to 2 per cent and 2.2 per cent, respectively.
"This question has been coming for quite some time. We have been analysing the adverse movement of commodity prices - going towards the higher side," Maruti Suzuki India Senior Executive Director (Marketing and Sales) RS Kalsi told PTI.
He further said, "Also the foreign exchange rate has been impacting us adversely. The fuel prices also have increased, adding to the logistics costs. The company cannot absorb the full impact any longer."
"So it is now imperative for us to pass on some impact of the above factors to the customers through a price increase. This will happen across the range of models in August itself," he said.
When asked about the quantum of hike, he said, "We are working on it. It will vary depending on the models."
Maruti Suzuki currently sells a range of vehicles from entry-level Alto 800 with price starting at Rs 2.51 lakh to mid-sized sedan Ciaz tagged at Rs 11.51 lakh (ex-showroom Delhi).
Tata Motors was the first carmaker to raise prices of passenger vehicles to offset the increased input costs. Last month, the company had said it expected sales momentum to continue despite the hike.