'With inflationary pressures now at elevated levels and the adverse cost environment persisting, the company has to pass on a portion of the increased costs to the market, while continuing to ensure that the impact on customers is kept to the minimum extent possible.'
Maruti Suzuki India (MSIL), the country's largest carmaker, on Thursday announced that it will raise prices of its models across its entire portfolio by up to Rs 30,000 from June due to a 'sustained increase in input costs'.
Key Points
- Maruti cited sustained input cost inflation and adverse supply-chain conditions linked to the West Asia conflict.
- Several automakers including Tata Motors, Audi, BMW and JSW MG Motor recently announced vehicle price increases.
- Rising commodity prices, logistics costs and currency fluctuations continue to pressure automobile manufacturing margins significantly.
- Maruti said it attempted cost-reduction measures before deciding to partially pass increased costs onto customers.
Input Costs Remain Elevated
The ongoing West Asia conflict -- which started when Israel and the US attacked Iran -- has affected the automobile supply chain in India, forcing many carmakers to increase their prices.
'For the past few months, the company has been making continuous efforts to mitigate the cost impact to the extent possible through cost reduction measures,' MSIL said in a notice to the BSE.
'However, with inflationary pressures now at elevated levels and the adverse cost environment persisting, the company has to pass on a portion of the increased costs to the market, while continuing to ensure that the impact on customers is kept to the minimum extent possible.
'The exact quantum of change will vary from model to model,' it added.
West Asia Conflict Impact
MSIL said that 'in view of the sustained increase in input costs', it has decided to increase the prices of its models across its portfolio by up to Rs 30,000 'with effect from June 2026'.
Several automobile manufacturers in India have announced vehicle price hikes over the last 60 days, mainly due to rising input costs, commodity prices, logistics expenses and foreign exchange fluctuations.
Carmakers Raise Vehicle Prices
Tata Motors increased the prices of its commercial vehicles by up to 1.5 per cent from April. The automaker attributed the revision to rising commodity prices and higher input costs. The increase varied depending on the model and variant.
JSW MG Motor India increased vehicle prices by up to 2 per cent across its mainstream lineup from April. This was done to partially offset sustained increases in raw material and production costs.
Audi India increased its prices by up to 2 per cent from April across its entire range sold in India.
Similarly, BMW India increased its prices by up to 2 per cent from April across their model ranges sold in the country.
Audi and BMW attributed the revision to rising logistics and material costs, along with currency fluctuations.
Feature Presentation: Ashish Narsale/Rediff
