Photo credit: www.gadgets360.com
Maruti Suzuki Announces Price Hike Amid Rising Costs and Changing Market Dynamics
On Monday, Maruti Suzuki India, a prominent player in the automotive industry, revealed plans for its third price increase of the year, which will take effect in April 2025. The adjustments, reaching up to four percent, stem from the need to address escalating input costs while contending with a slowdown in sales. The specific changes in pricing will vary based on the model, as indicated in a company filing with the stock exchange.
The auto manufacturer stated, “Due to rising input costs and operational expenses, the company has decided to increase car prices starting in April 2025. The anticipated rise will be up to four percent, with variations depending on the model.” Maruti Suzuki further noted its ongoing efforts to manage costs and lessen the financial burden on consumers, although it acknowledged that some of the increased expenses might need to be transferred to the market.
This announcement follows earlier price hikes implemented on January 1 and February 1 of this year. Despite these price adjustments, the company recently reported a 16 percent rise in net profits for the October to December quarter of the current financial year, achieving Rs 3,727 crore compared to Rs 3,206.8 crore for the same period last year.
In standalone terms, Maruti Suzuki’s net profit demonstrated a year-on-year increase of 13 percent, climbing to Rs 3,525 crore from Rs 3,130 crore during the corresponding quarter the previous year.
Additionally, Maruti Suzuki’s parent company, Suzuki Motor Corporation of Japan, recently announced a reevaluation of its strategy, citing a shift in the market landscape, including declining market share in India and the burgeoning electric vehicle sector. Their updated mid-term plan for 2025-2030 positions India as a pivotal market, with aspirations to bolster manufacturing capacity to produce four million vehicles annually. The goal is to regain a 50 percent market share domestically while establishing India as a global hub for vehicle exports.
Currently, Maruti Suzuki exports approximately 300,000 vehicles from India each year but aims to increase this figure to between 750,000 and 800,000 units by the end of the decade.
Source
www.gadgets360.com