Higher input costs drive auto major to raise prices; more revisions are on the cards, it says
Due to a rise in the cost of raw materials, Maruti Suzuki India Limited on Monday announced a price revision for the Swift and all CNG versions. The rise in ex-showroom pricing (Delhi) is up to Rs 15,000. It said that the increased pricing is effective immediately.
“Maruti Suzuki India Limited today announced a price change for Swift and all CNG variants owing to increase in various input costs. The increase in Ex-showroom prices (Delhi) is up to Rs 15,000 on the above models. The new prices are effective from today, July 12, 2021,” the automaker said in a filing with the Bombay Stock Exchange Limited.
The business stated that price increases in additional models are in the works and would be announced soon. On the BSE, Maruti Suzuki's stock jumped over 1 per cent to Rs 7,500 per share in early trade on Monday. In June, the business said that starting in July, it will raise the pricing of its automobiles to pass on some of the increased costs to customers.
“This is to inform you that over the past year the cost of the company's vehicles continues to be adversely impacted due to an increase in various input costs. Hence, it has become imperative for the Company to pass on some impact of the additional cost to customers through a price rise,” Maruti Suzuki had said in a filing on June 21.
“The price rise was planned in the second quarter and the increase shall vary for different models,” the carmaker said. Maruti had hiked the prices for some of the models in April of this year for the same reason. Before that, in January, it had raised the pricing for several models citing an increase in component costs. Depending on the model and range, the costs were increased by up to Rs 34,000.