Maruti To Hike Prices Of All Of Its Models In January 2021
While it has become a yearly affair, this time, one must take into account the damage done by the pandemic and government-enforced lockdowns.
Maruti Suzuki has announced that, in January 2021, it would hike the asking price of all of its vehicles.
The top automaker has, in a recent regulatory filing, stated that the cost of its products has been impacted due to increase in input costs over the past year.
Thus, Maruti states that it has become imperative for the company to pass on some impact of the additional cost to customers through a price increase in January 2021.
It should be noted that the price hike will vary for each car in the manufacturer’s lineup and it is expected to be more than usual annual price hike due to rise in the cost of raw materials.
To put it into context, the cost of steel is up 30 percent in the past 6 months, while since March this year, the price of aluminium has increased by 40 percent.
Similarly, the prices of copper and rubber too are headed northwards steadily. Since automakers witnessed losses in the first 2 quarters of the financial year 2020-21, there is little room for them to absorb the increasing input costs.
A price hike during the start of a calendar year is usually a tactic used by automakers to clear their inventory and push sales by the end of the previous year. Discounts and special offers also help this cause.
While we do not know by how much Maruti will increase the price of its products, we can be rest assured that other carmakers will follow suit and announce the price hike of their vehicles soon.