Maruti Suzuki announced price hike of 1.6 percent across select vehicles wef today, April 16, 2021
Towards the end of March 2021, Maruti Suzuki announced a price hike across its model range, effective in April 2021. Today, MSIL in its regulatory filing said its increasing the price for select models owing to increase in various input costs.
A detailed price list is unavailable at this time. The weighted average price increase across models is set at 1.6 percent on ex-sh price (Delhi). Prices revision is effective from today, April 16, 2021.
New price list of all cars will be shared soon. Up to Rs 34k has been increased across range of Arena as well as Nexa cars. These includes best sellers like Alto, Swift, Dzire, Brezza, Ertiga, XL6, WagonR, etc.
Indian auto industry price hikes
The price hike was imperative, and has over time become a norm of sorts. With each new financial year, a new price list is introduced. This is in quick succession to the price hike announced at the start of a calendar year for new model year vehicles.
Industry practices are more or less established if not formalised. So, while one manufacturer may increase prices at the start of a month, another may introduce a hike a fortnight later. But make no mistake that a price hike during April is inevitable.
A simple way of looking at trends is to be prepared to take on some impact of the additional cost with each passing quarter. The easy messaging is that today is as good as any day to buy a vehicle. Each deferred decision results in a price hike, and not necessarily in added features.
Suzuki Motor Gujarat’s third plant
Earlier this month, MSIL announced total production in March 2021 at 1,72,433 units, up from 92,540 units in March 2020. Production in the compact and compact sub-segment increased to 1,23,705 units, up from 67,708 units. The segment is one where MSIL offers a wide range of vehicles, and over the years it has more than dominated the segment. Production in its van and UV segment more than doubled at 32,421 units.
While India’s vehicle penetration per 1,000 people has been growing, numbers are low compared to developed nations. As such, these numbers are expected to continue to grow. With a wide range of loan and finance plans, buying a car is a possibility for many more folks today than it was even a decade earlier.
At the start of April, production began at Suzuki Motor Gujarat’s third plant. At full production, plant C is capable of putting 2.5 lakh units on the road. While the wheels at the Indian auto industry always appear to be slow seeing what most other manufacturers dish out each month, MSIL continues to pull the strings where overall industry volume is concerned. And looking at MSIL’s vehicle production projections, the company sure has some serious plans to expand its presence and obliterate a few competitors.