Maruti Suzuki cites rising input costs as the main reason for this increase in prices
Auto market leader Maruti Suzuki has announced an increase in prices across models and range. The new pricing came into effect from Monday, 18th January 2021, and is up to Rs.34,000. The reason for this price increase is due to rising input prices, some of the impact of which the company has now decided to pass on to customers.
This price increase comes at a time when every other automaker in India has made similar announcements. Mahindra revealed a price hike across its passenger and commercial vehicles by 1.9 percent leading to an increase by Rs.4,000-40,000 depending on model while Skoda had stated at the end of last year itself that from 1st Jan 2021, prices would be increased by 2.5 percent. Volkswagen India has also increased prices of the Polo and Vento by 2.5 percent while Nissan, Renault, Honda, Ford and BMW have also made similar announcements.
Following this announcement, the company has revealed that the Alto 800 will be increased by upto Rs.14,000 while the S-Presso prices will go up by Rs.7,000. The Celerio and WagonR pricing will be increased by Rs.19,400 and Rs.23,200 respectively while the Eeco will be up by Rs.24,200.
Maruti Suzuki Swift prices will be hiked by Rs.30,000 and the DZire and Brezza by Rs.12,500 and Rs.10,000 respectively. The Maruti Suzuki Ertiga will see the maximum price hike by Rs.34,000. Below is a detailed look at the new prices of Maruti cars, effective from 18th Jan 2021.
Even as is generally seen in the past that automakers resort to increase in prices at the start of each calendar year citing rising input costs and fluctuations in foreign exchange rates, this year is particularly noteworthy. The Indian auto industry has been facing constraints in demand for a long time.
The crisis was exacerbated by the coronavirus pandemic and still continues to this day. Demand saw some revival during the festive season though most manufacturers are concerned that demand could once again dip in the coming days. Increase in prices at this time could cause further constraints.
Maruti Suzuki reported sales of 12,13,660 units in 2020, an 18 percent decline over sales of 14,85,660 units in 2019. December closed on a positive note with a 20.2 percent YoY growth to 1,60,226 units as against 1,33,296 units sold in December 2019. December 2020 sales in domestic markets increased 7.8 percent to 1,46,40 units and the company noted increased demand for models such as the Alto and S-Presso.
Maruti Suzuki Smart Finance Platform
Earlier last week, Maruti Suzuki also launched an online financing platform. This Smart Finance Platform at the company’s Arena dealerships has seen digitization of 24 out of 26 steps in the purchase of a vehicle. It allows customers to select the best suited loan product and complete all financial formalities right upto the disbursement of loan in a few clicks.