Maruti hikes prices by up to Rs 12,000

Hyundai to announce hikes today.

Maruti Udyog Ltd (MUL), India's largest car maker, will increase prices by as much as Rs 12,000 for different models, effective February 1. Hyundai, the country's second-largest car maker, will also announce increases in some models tomorrow.

Jagdish Khattar, managing director, MUL, said, "We have informed all our dealers about the price hike. There has been steep rise in the cost of different raw material like steel and aluminum components. We are transferring a little burden of the rising cost to the customer, while absorbing most of the inputs costs, which have sharply increased in the past few months."

However, Maruti Udyog Limited will not be raising the prices of the newly-launched models like the Swift Diesel, though the price of the Zen Estilo, which was launched in December last year, will rise marginally.

Meanwhile, reacting to the Marutis price hike Hyundai is expected to raise price up to Rs 18,000, also effective February 1.

Company sources said that price increase will be across the board for the Santro, Getz, mid- and premium-segment sedans like the Verna, Sonata, and Elantra and its SUV Tuscon model.

Other companies like Honda Siel Car Ltd, Ford India Motor, General Motors and Mahindra & Mahindra had already raised prices by one to two per cent (ex-showroom) in January this year.