Maruti sets stage for price hikes in 2024

India’s largest carmaker Maruti Suzuki India Ltd on Monday said it will raise prices beginning 1 January, setting the stage for similar hikes by rival automakers. The company attributed the move to higher commodity costs and steep inflation, but did not specify the quantum of price hike for specific models.

- Alisha Sachdev

“Steel prices have firmed up a little over the last 3-4 months, which accounts for around 38% of our commodity buying. We have been estimating the impact of the volatility of commodity prices on our costs, and trying to cut costs internally and then take price hikes as a last resort. We are observing volatility mainly in commodities and we also observe inflationary trends will be on the higher side," Shashank Srivastava, senior executive director, Maruti Suzuki said in an interview.

Automakers typically raise prices of passenger vehicles in the new year to coincide with model year changeover, or the new financial year. Executives of other automakers also confirmed their price hike plans.