Front Profile
Maruti Suzuki had increased the prices of the entire product line-up back in January 2023, and now in January 2024, Maruti is going to do it again as they’ve already notified the BSE as part of its regulatory filing.
Global inflation persists due to geopolitical and economic factors, impacting the auto industry’s supply chain and elevating input costs, as noted in Maruti Suzuki’s recent BSE filing. The company faces increased cost pressures, encompassing both overall inflation and rising commodity prices. Despite attempts to absorb and minimize additional costs, carmakers, including Maruti, find it increasingly challenging.
Consequently, the January 2024 price increase by Maruti will be applicable across its entire range, covering the Maruti Arena and premium Nexa models. Ranging from Rs 3.54 lakh to Rs 28.42 lakh, the exact hike for each model will be disclosed in January 2024, expected to be within the 1% to 2% range based on past announcements. The anticipated increase aligns with the average 1.1% hike in January 2023.
The surge in input costs for carmakers in 2024 is attributed to upgrades for compliance with stricter emission norms, mandated safety equipment, and the notable expense of semiconductor chips. Cars featuring advanced technology are likely to experience a more substantial price hike compared to those with fewer electronic components.
In the end, other carmakers are likely to follow the footsteps of Maruti Suzuki and announce the price hike which could begin from December because Audi has already announced the price hike by 2% across it’s entire line-up.