Maruti Suzuki to hike prices from January 2022

The car major on Thursday informed that it has planned to hike prices for different models from January 2022 due to higher input costs.

Maruti Suzuki India said that over the past year the cost of company's vehicles continues to be adversely impacted due to increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise. Separately, the company announced a price hike of Rs 8,000 in EECO car model (all non-cargo variants) effective from 30 November 2021, due to introduction of passenger airbag.

Earlier in September 2021, the car major announced a price hike across models due to higher input costs.

The car major on 1 December 2021 announced that its total sales fell 9.16% to 1,39,184 units in November 2021 as against 1,53,223 units in November 2020. Total sales in the month included domestic sales of 1,13,017 units (down 18.67% Y-o-Y), sales to other OEM of 4,774 units (down 9.29% Y-o-Y) and its highest ever monthly exports of 21,393 units (up 137.59% Y-o-Y).

The car major's total production (passenger vehicles+light commercial vehicles) fell 3.10% to 1,45,560 units in November 2021 as against 1,50,221 units in November 2020.

"The shortage of electronic components had a minor impact on the production of vehicles during the month. The shortage primarily affected the production of vehicles sold in domestic market. The company took all possible measures to minimise the impact," Maruti Suzuki India had said in a statement.

Meanwhile, the car major is expecting an adverse impact on vehicle production in Haryana and Gujarat plants in December 2021 owing to electronic components supply constraint. "Owing to a supply constraint of electronic components due to the semiconductor shortage situation, the company is expecting an adverse impact on vehicle production in the month of December 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat," the car major said in a statement on Tuesday, 30 November 2020. Though the situation is quite dynamic, it is currently estimated that the total vehicle production volume across both locations could be around 80% to 85% of normal production, it added.

Shares of Maruti Suzuki India were down 0.09% to Rs 7,268.10 on BSE. Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles).

The car major's net profit dropped 65.7% to Rs 486.90 crore in Q2 FY22 as against Rs 1,419.60 crore in Q2 FY21. Net sales rose 9.1% Y-o-Y (year-on-year) to Rs 19,300.50 crore during the quarter.

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