Maruti Suzuki announces price increase – that could come into effect as early as next month, July 2021
FY21 got off on the back foot for most in the auto industry. And just as there were talks of an expected slow recovery, Covid-19 pandemic second wave unleashed itself. In turn, the start to FY22 too was a far cry from sales in preceding months.
State-wise lockdown protocols meant production and manufacturing activity was greatly impacted. Any attempts at sales was thwarted owing to lockdown limitations that meant dealerships were shutdown yet again. Depending on region, across manufacturers some manufacturing resumed to cater to exports.
While times seem tough, and all focus remains on getting the auto industry to start functioning, manufacturers have a lot on their plates. And one niggling concern remains a rise in input costs. A phenomenon buyers are well acquainted with considering the frequency of price hikes each year.
MSIL price hike
Earlier today, Maruti Suzuki announced an impending price hike through a regulatory filing. The said revision will come into effect in Q2 FY22 (Q3 2021). And will vary for varied models. The announcement could be a reality as early as in July 2021.
In recent months, the cost of MSIL’s vehicles continued to be adversely impacted owing to increase in various input costs. Resultantly, the company needs to pass on some of impact of additional cost to customers through a price rise.
It’s safe to say 2021 has already seen multiple price revisions. The first being in January, and then again in April 2021. The quantum of hike for the current announcement isn’t yet announced. Maruti Suzuki’s recent price revision in April 2021 resulted in a average price increase of 1.6 percent on ex-sh Delhi price. A price revision in January 18, 2021 was in the range of 5k – 34k.
Maruti has not announced the exact price hike that will be in effect from next quarter. It is expected in the similar range as previous hikes. Price of all cars could be increased, including their popular and best selling models like – Alto, WagonR, Swift, Dzire, Brezza, Ertiga, etc.
Maruti Suzuki production
Maruti’s dominance in the car market is bolstered by its wide range of small cars. This includes a range of mini, and compact cars. Sales in the aforementioned segments helps MSIL consistently grab a majority share of total cars sold in India.
Given current market circumstances, price hikes are inevitable. As MSIL navigates through current conditions, it won’t be surprising that the rest of the market follows suit where price revisions are concerned. As the country continues to battle with Covid-19, the ability to control the pandemic and infection will mean manufacturing activity will slowly limp back to full capacity.