Maruti Suzuki officials have stated that they are preparing to hike prices of their products within a week.
The company has not discussed the quantum of the hike or the models expected to be hit, but we're expecting a statement anytime now elaborating on the matter.
The reason stated for the hike is to offset impact of the fluctuation of foreign exchange as well as balance out increase in input costs.
These are the two main factors that have put Maruti's margins under pressure. The company is working closely with local vendors for sourcing parts that will decrease the forex exposure. Localization is the only way to shield itself from forex fluctuation for the domestic market business.
Another method for mitigating forex fluctuation is by exporting cars to new markets. It was learned yesterday that Maruti may start exports of the Alto 800 to emerging countries by December 2012.
Maruti's next important task is to ensure that the launch of the Alto 800 is conducted in a smooth fashion and ensure the production lines are kept ready for an overflowing order book.
[Source - MyDigitalFC.com]