Companies

Maruti announces price hike from January 2022

Our Bureau | | | Updated on: Dec 02, 2021
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Costs continue to be adversely impacted, it says

Maruti Suzuki India will be hiking the prices of its vehicles starting January 2022.

“Over the past year, the cost of company's vehicles continue to be adversely impacted due to increase in various input costs. Therefore, it has become imperative for the company to pass on some impact of the above additional costs to customers through a price hike,” the company informed the exchanges.

It has not detailed the price hike yet. The price rise has been planned in January, 2022. The increase shall vary for different models, the company further said.

Fall in profit

The company had reported a 66 per cent year-on-year (y-o-y) decline in net profit to ₹487 crore for the quarter ended-September 30, compared with a net profit of ₹1,419 crore in the corresponding period last year. It had further added that it has been impacted by electric component shortages and rise in commodity prices.

“This quarter was also marked by an unprecedented increase in the prices of commodities like steel, aluminium and precious metals within a span of one year. The company made maximum efforts to absorb input cost increases offsetting them through cost reduction and passed on minimum impact to customers by way of car price increase,” MSIL had said adding that there was a drop in its net profit due to this.

Separately, the auto major on Wednesday reported decline in sales in November, on a year-on-year basis.

The country's largest passenger car manufacturer reported a decline of 18 per cent year-on-year (y-o-y) in its domestic wholesales (dispatches to dealers) to 1,09,726 units in November compared with 1,35,775 units in the corresponding month last year.

Published on December 02, 2021

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