Market leader Maruti Suzuki India is considering an increase in vehicle prices due to rising commodity costs, even as demand remains strong following GST rate reductions. The company’s Senior Executive Officer (Marketing and Sales), Partho Banerjee, said this on Monday.
Rising commodity prices driving cost pressure
Commenting on input costs, Banerjee said commodity prices have been rising sharply.
“On the commodity front, prices are going up. In precious metals, the increase is phenomenal. We are keeping a very close watch, considering the geopolitical scenario as well. But yes, in times to come, we are going to review the price increase,” he said.
He was responding to questions on possible price hikes in the near future as escalating commodity prices continue to impact input costs.
Company aims to minimise impact on customers
Banerjee said Maruti Suzuki’s priority remains to minimise the burden on customers.
“Our endeavour, being a market leader, has always been to minimise the cost increase to our customers. Our supply chain team, production team, and others are working to see how much of the commodity cost increase we can absorb,” he said.
However, he added that passing on costs may become unavoidable beyond a certain point.
“After a certain extent, if we are unable to accommodate the cost increase, we need to pass it on to our customers,” Banerjee said.
Price protection scheme for existing bookings
While Banerjee did not specify a timeline for a potential price hike, he said the company introduced a price protection scheme in January for customers who booked vehicles but are yet to receive delivery.
“We were seeing first-time customers entering the four-wheeler segment, and we wanted to give them an opportunity to upgrade. Hence, we have given a price protection scheme for those who have booked their vehicles. There will be no price increase for those customers,” he said.
Previous price cuts after GST 2.0
In September last year, following the implementation of GST 2.0, Maruti Suzuki had reduced prices across several entry-level models. The S-Presso saw a cut of up to Rs 1,29,600, Alto K10 up to Rs 1,07,600, Celerio by Rs 94,100, and Wagon-R by up to Rs 79,600, among others.
Production constraints to continue for a few months
Addressing production challenges, Banerjee said constraints are expected to continue for a few more months until new capacity comes online.
Maruti Suzuki India’s second plant at Kharkhoda in Haryana is scheduled to begin operations by April 2026. This will be followed by the commissioning of the fourth production line at its Gujarat facility, adding a combined annual capacity of 5 lakh units.
e VITARA launch imminent
On the launch of the e VITARA in the domestic market, Banerjee said the electric SUV is set to hit the market this month, with dispatches already underway.
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