Stung by appreciating yen and rising input costs, market leader Maruti Suzuki has upped prices by Rs 2,400-5,200 across models. “The average hike is around one per cent of retail prices,” a company spokesperson said. The company sells a range of models — from small car Alto to the luxury sedan Kizashi — priced between Rs 2.45 lakh and Rs 17.5 lakh.
According to an industry analyst, the hike should be seen in a long-term perspective, as an acceptance of new cost structure by the company.
“The yen has appreciated by almost 50 per cent in the last three years and nobody expects it to depreciate any time soon. While boosting exports can act like a natural hedge, it will happen only in the long run… For this festival season, the company might give discounts, but such measures are only temporary while the price hike is long-term,” he said