India's biggest passenger car manufacturing company Maruti Suzuki India has decided to increase prices across various models from January 2020. The company has said the decision to increase prices was taken over rising input costs over the past year. In a statement to stock exchanges, Maruti Suzuki said the price increase will vary for different models.
"You are kindly informed that over the past year, the cost of the company's vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the Company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020. This price increase shall vary for different models."
The Indian auto sector has been facing a huge downturn for over one year now.
Even though the festive season saw some improvement in sales for Maruti -- and it posted a 2.3 per cent increase in sales in October breaking a series of seven straight months of decline -- its overall sales fell again in November, posting a 3.3 per cent drop in PV sales over the last year.
In all, the sales of all major auto companies, including Tata Motors, Honda Cars, Eicher Motors, and Mahindra & Mahindra, saw a significant decline in sales in November. Industry experts say the negative trend would continue in the coming months as the April-2020 deadline for using BS-IV vehicles approaches.
Most auto companies, including Maruti, are trying their best to reduce their inventory on BS-IV models to zero by then, as no BS-IV vehicle can be sold from April 1 next year. Meanwhile, Maruti Suzuki share price was trading 0.20% or 14.55 points higher at Rs 7,152 on BSE. The stock has gained after three days of fall.
Edited by Manoj Sharma