Maruti Suzuki have just announced that they will be increasing the prices of their vehicles from next month onward, to be effective from January 1, 2021. Maruti Suzuki, the largest automaker in India, have however not announced the quantum of the price hike or if it affects select models only or is applicable across the range. The Maruti Suzuki price hike will vary from model to model, but the company is yet to announce the exact percentage for each model. We however expect the price hike to be marginal and not significant.
Price revisions towards the end of the year has almost become a norm in the automotive industry. Almost every manufacturer marginally increases the price of their vehicles at this time of the year or within the first two months of the coming year. Earlier this year, we saw carmakers like Hyundai and Ford increase the price of vehicles across the range. Even luxury carmakers like BMW and Audi marginally increased their prices in October and November earlier this year.
Maruti Suzuki, in a regulatory filing at the Bombay Stock Exchange (BSE), said,
"Over the past year, the cost of 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 in January 2021,"
Maruti says that the primary reason for this price hike is rising input costs, production thus becoming more expensive. Although manufacturing had been severely affected earlier this year due to the lockdown, Maruti Suzuki say that they are now operating at full capacity. In November, Maruti Suzuki's total production increased by 5.91% to 1,50,221 units. The company had produced a total of 1,41,834 units in the same month last year.
Going ahead, Maruti Suzuki has quite a few new products coming up for India. One of the most exciting ones will be a mid-size SUV that Maruti Suzuki will be developing jointly with Toyota to take on the likes of the Hyundai Creta and Kia Seltos in 2022. Maruti Suzuki even has some promising EVs coming up in the form of the WagonR EV and the production-spec Future E. However, what you should be most looking forward to is the five-door Suzuki Jimny, probably the best life style vehicle that does not compromise on practicality.