Rising input costs may force Maruti Suzuki India (MSIL) to increase the prices of its range of products. Top management of MSIL will take the final call on this during its meeting called next week.
“We would meet next week to decide on the extent to which prices would be raised across different products. The rise may not be across the entire range,” said a senior executive of the company. The new prices would come into force with immediate effect from the day the decision is taken.
Earlier, while announcing the results for the quarter ended September, the company had admitted that profit margins were under pressure due to an increase in commodity prices.
MSIL had reported 4.95 per cent increase in net profit at Rs 598.20 crore for the quarter. The cost of consumption of raw materials and components had gone up to Rs 6938.88 crore during the quarter from the earlier Rs 5254.89 crore. The company has revised price twice this financial year.
Tata Motors, too, effected a price rise from January. While the company raised the prices of passenger cars between Rs 3,000 and Rs 15,000, for commercial vehicles the rise ranges between Rs 1,500 and Rs 30,000.
Mahindra & Mahindra has indicated it would raise prices of all its products this month, the quantum of which is yet to be announced. “We are looking at a increasing the price of our products this month, the exact quantum will be announced soon,” said Rajesh Jejurikar, Chief Executive, automotive division, M&M.
Hyundai Motor India and General Motors, too, are looking at increasing prices.
“We have been absorbing the escalated input costs, but have now decided to pass it marginally to customers. From January onwards, there will be an increase in prices of vehicles by 1.5-2 per cent,” said Arvind Saxena, HMIL, director (marketing and sales).
Last month, General Motors had indicated it would raise the prices of its products by 1.5-2.5 per cent mid-January, while Volkswagen has increased the prices of its small car, Polo, by over 2.9 per cent from this month.
