Maruti Suzuki, the leading car manufacturer in India, recently revealed a slight increase in prices for all of its products. The price hike, amounting to 0.45%, was announced on Tuesday, January 16th, 2024. The new pricing will take effect right away.
This marks the company’s second significant increase in prices within the past year, following a previous adjustment on April 1st, 2023. Maruti Suzuki explained that the recent increase in prices was due to higher input costs and operational expenses.
Wide Range of Cars to Get Costlier
Maruti Suzuki has an extensive selection of passenger vehicles, ranging from the economical Alto hatchback to the luxurious S-Cross and Grand Vitara SUVs. The current prices for its models range from Rs. 3.67 lakhs for the base Alto trim to Rs. 30.5 lakhs for the top Grand Vitara Hybrid Zeta+ variant.
Due to a recent price adjustment, the on-road prices of vehicles will see an increase ranging from approximately Rs. 1,650 for the Alto to over Rs. 13,700 for the Grand Vitara Hybrid. Popular models such as the Swift, Baleno, and Brezza are anticipated to experience a price increase ranging from Rs. 4,000 to Rs. 5,500.
Although Maruti Suzuki still maintains a strong hold on the Indian car market, its sales have experienced a slight decline as of late. In December 2023, the number of domestic wholesales decreased by 1.28% to 1,37,551 units, compared to 1,33,296 units in December 2022.
On the other hand, there was a significant increase in exports, with a growth rate of more than 21% in the previous month. In December 2023, Maruti Suzuki exported a total of 27,061 vehicles to international markets.
The total sales, including exports, reached 1,37,551 units, which represents a 2.8% growth compared to the 1,33,296 units sold in December 2022.
Annual Vehicle Sales 0f 2023 – 2023
In the fiscal year 2022-23, Maruti Suzuki India Limited recorded an impressive cumulative domestic sales figure of 1,644,876 units, marking a significant growth of 20.5% compared to the previous fiscal year.
Last week, Maruti Suzuki made a significant announcement regarding their investment plans in India, which is considered to be one of the largest ever made by an automaker in the country.
The company has announced plans to invest a significant amount of money in a new production facility located in Kharkhoda, Sonipat district of Haryana.
Expected to be operational by 2028-29, this upcoming facility will be capable of producing 10 lakh passenger vehicle units per year. It has the potential to become one of the biggest manufacturing sites for Maruti Suzuki worldwide.
The Gujarat plant will enhance Maruti Suzuki’s position in the Indian auto market and promote innovation and local manufacturing. Additionally, this indicates the carmaker’s plan to expand its reach in international markets through exports from India.
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Share Prices Surge After Price Hike Announcement
The stock markets responded favorably to the recent announcement of a 0.45% increase in prices by Maruti Suzuki. The share price on NSE experienced a significant surge of over 1% as of 16 January, 2024.
This indicates that investors have confidence in the company’s ability to maintain margins and profitability, despite the challenges posed by the costs of raw materials.
During the afternoon trade on Tuesday, January 16th 2024, Maruti Suzuki shares were being traded at Rs. 10,195 per share on NSE, showing a respectable 2.26% increase compared to the closing price of the previous day.
The auto stock has almost regained all of its losses from last Friday, despite the overall weakness in the market.