The country’s largest passenger vehicle manufacturer, Maruti Suzuki India (MSIL), on Friday, said that it will increase the prices from January because of cost pressure driven by overall inflation and recent regulatory requirements.
However, the company did not mention the quantum of the increase, saying it will announce only in January and will vary across models.
“The company continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements. While the company makes the maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price increase,” MSIL said in a regulatory filing.
Despite improved availability of chips, normalcy in auto production expected only after 2-3 quartersThough passenger vehicle makers are ramping up capacities to cut waiting periods, the growth in supply is not sufficient to meet the demand
“The company has planned this price increase in January, 2023 which shall vary across models,” it added.
On Thursday, Shashank Srivastava, Senior Executive Officer, Marketing & Sales, MSIL said that there is overall inflation across sectors, and the increase in repo rates may also impact the sales going forward.
He cautioned that the increase in repo rates, which were announced earlier, is now being affected in retail financing, as in the passenger vehicle segment, about 80 per cent of sales, and all of inventory is financed.
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“It is important to monitor the impact of inflationary pressures on demand going forward,” he had said.
This is the second time this financial year that MSIL has announced price increases. The company in April had announced a price increase by 1.3 per cent across models.
Other companies may also announce price increases in the near future.