India’s largest automaker, Maruti Suzuki, has announced that the prices of its vehicles will be revised from January 2021. Maruti Suzuki has cited the increase as an impact of rising input costs which in turn increases manufacturing cost.
In a regulatory filing, Maruti Suzuki has said that entry costs for all vehicles have increased due to various reasons. However, the details of the hike are not known. Maruti Suzuki may formally announce the price increase at a later date and also provide details on the percentage of increase on all cars. Maruti Suzuki has planned to pass on the impact of the additional cost to customers and it will be effective from January 1.
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Maruti Suzuki’s entry-level model, the Alto is priced at Rs 2.95 lakh, while the high-end variant of the XL6 is priced at Rs 11.52 lakh, making it the most expensive car in the line. . More expensive cars will likely get a higher percentage of the hike, while entry-level models will get smaller hikes to ensure that top-selling models aren’t hit too hard.
“Over the past year, the cost of the company’s vehicles has been negatively impacted due to the increase in various input costs. Therefore, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase in January 2021, ”the company said.
The year 2020 has been a slow sales period for all automakers. After the impact of COVID-19 and the related lockdown, which closed all dealerships in India and even forced production to close for about a month. Post that, sales have been slow for all manufacturers in India. Maruti Suzuki’s year-on-year sales were down 2.5% for November 2020. It had sold 1.39,133 units in November 2019, which was down to 1.35,775 units. The Maruti Suzuki plant was even used to supply an emergency medical respirator, which is a critical device for saving severe cases of COVID-19.
Maruti Suzuki has about 50% of the market share in India and is ahead of all other manufacturers by a large margin. Maruti Suzuki currently offers a long list of vehicles in the mass segment. Includes Alto, Celerio, Swift, Ignis, Dzire, Baleno, Ciaz, Ertiga, Vitara Brezza, S-Cross and XL6! The brand also plans to launch some new products in 2021 and may include the all-new Jimny, which was showcased at Auto Expo 2020 and gathered a huge crowd.
Earlier this year, Maruti Suzuki discontinued all of its diesel-powered variants from the market. This movement began last year to ensure that its vehicles meet BS6 emission standards. The only two exclusive diesel models, the S-Cross and the Vitara Brezza, received a 1.5-liter gasoline engine. Currently, Maruti has no plans to reintroduce the diesel engine to the market. However, if demand increases in the future, diesel engines could make a comeback. Currently, only Maruti Suzuki has announced the price increase. However, most other manufacturers are likely to follow suit.
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