Maruti Suzuki India Limited (MSIL), the country's largest passenger car maker, has announced a price hike in its entire vehicle fleet by up to Rs. 20,000 in the domestic market, with immediate effect. Accordingly, from January 16, 2013 onwards, the country's top selling cars like Alto 800, Alto K10, Swift, DZire, Ritz and Ertiga, amongst others will get a little dearer on pockets of the domestic car enthusiasts.
Maruti Suzuki's latest price hike is believed to have been stemmed from the uncertain currency fluctuations, recent slow sales and ever increasing costs of raw materials. The decision marks the company's second increase in prices of its domestic portfolio, in less than a month. In December 2012, Maruti Suzuki implied a 1 to 3 per cent price hike on account of increasing input costs and adverse currency fluctuations. Reportedly, uncertain foreign exchange fluctuations had costed Maruti Suzuki a sum close to Rs. 350 crore between July and September months of the ongoing 2012-13 fiscal.
Informing about the company's latest move, Mayank Pareek, Chief Operating Officer (COO), Marketing and Sales, Maruti Suzuki India, was quoted as saying, “The price hike across all models will come into effect from tomorrow and will be up to Rs. 20,000.” Further, Pareek affirmed that the hike was necessary for the company, because of increasing pressure on profit margins due to uncertain foreign exchange fluctuations.
At present, Maruti Suzuki has a quite diverse line up of four-wheelers in the Indian passenger car market. The company's lowest priced offering is the Alto sub-compact hatchback, which is offered to local enthusiasts with a base price of Rs. 2.10 lakhs (ex-showroom New Delhi). Further, Maruti Suzuki's most expensive model is the Kizashi sedan, which carries an ex-showroom price of Rs. 17.52 lakhs in the National Capital Region (NCR).
