Maruti Suzuki India Limited (MSIL), the country's largest passenger car maker, announced to hike the prices of all its range by 1 per cent on October 3, 2012. The company cited the fluctuations in the value of Indian National Rupee (INR) and the increase in the average cost of raw materials to be the prime reasons behind the 1 per cent hike in prices of its models in the country.
The decision of MSIL seems to have been driven due the peer pressure as most Indian auto operators have recently hiked the prices of their product range in the country. The trend was started by Toyota Kirloskar Motors (TKM), who declared in August 2012 regarding the plans of an increase in prices of its products from October 1, 2012 in the domestic market. Accordingly, top car makers like Honda Cars India, General Motors India Private Limited (GMIPL) and Audi India followed the suit and hiked the market prices of their models in the country.
Reportedly, MSIL is working towards keeping a check on the impact of adverse currency movement on its expenditure. The company is also believed to be cutting its foreign exchange exposure by almost 65% at $ 600 million, as it moves closer to March 2015. Further, MSIL has also advised its vendors to reduce their imports.
The hike will not influence the MSIL fan base in the Indian passenger car maker and the company will keep its dominant position for a perceivable future. At present, MSIL is working profusely towards the build up of its Alto 800, termed as the most awaited car of the car by the media.
