Maruti Suzuki hints to increase prices of all variants from next fiscal; stock rises

Maruti Suzuki said, “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. The company has planned this price increase in April 2023 which shall vary across models."

Earlier this week, Tata Motors and Hero MotoCorp also announced the price hike of their vehicles - Image Source: Reuters

Maruti Suzuki India Limited (MSIL) – India’s largest car maker in terms of market share – has given an intimation of price hike across all variants from the next financial year. The upward price revision is done mainly to partially offset the rising input cost.

According to Maruti Suzuki’s exchange filing, “The company continues to witness increased cost pressure driven by overall inflation and regulatory requirements.”

The auto major further said, “While the company makes 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. The company has planned this price increase in April 2023 which shall vary across models."

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The automobile company has become the latest entrant to announce to price increase after Tata Motors and Hero MotoCorp earlier this week.

After trading near a flatline at the start of today’s session, the stock of Maruti gained as much as 1.5 per cent to touch a day’s high level of Rs 8375.10 per share on the BSE.

At around 1:30 PM, the counter quoted Rs 8347.50 per share, which was Rs 95.80 or 1.16 per cent higher than Wednesday’s closing price of Rs 8251.70 per share on the BSE.

Earlier on Tuesday, Tata Motors announced increasing the prices of commercial vehicles by up to 5 per cent from April 1. The price increase comes in the wake of the implementation of the more stringent BS-VI phase II emission norms from next month, it said.

Similarly, Hero MotoCorp on Wednesday said it will increase prices of its model range by around 2 per cent from next month to offset the impact of rise in production cost in order to conform to stricter emission norms.

The company will make an upward revision in the ex-showroom prices of its select motorcycles and scooters, effective from April 1, 2023, the country's leading two-wheeler maker said in a statement.

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