New Delhi: India's largest passenger car manufacturer, Maruti Suzuki India Ltd., has revealed plans to increase the prices of its vehicles effective January 2024. The decision is attributed to heightened cost pressures resulting from overall inflation and increased commodity prices. 

While the company has not disclosed the specific scale of the price hike, Maruti Suzuki has indicated that it will vary across its model range. In a statement, the automaker stated, "The company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices. While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market."  

This move follows Maruti Suzuki's last price hike, which saw a 0.8% increase across its model range starting from April 1, 2023. In a similar vein, German luxury car maker Audi has also announced a price hike for its vehicles in India, with an upward adjustment of up to 2% from January 2024. Audi cites rising input and operational costs as the primary drivers behind this decision. 

The price revision will be effective across the model range starting January 1, 2024. Balbir Singh Dhillon, Head of Audi India, explained, “Due to rising supply-chain-related input and operational costs, we have effected a price correction across our model range, maintaining the brand’s premium price positioning. The price correction aims to ensure sustainable growth for Audi India and our dealer partners, and we will ensure that the price hike’s impact is as minimal as possible for customers.” 

Maruti Suzuki's shares settled 0.072% lower at ₹10,481 apiece on Friday, reflecting the current economic dynamics. Despite the impending price increase, the scrip has shown resilience, gaining 25% since the beginning of this year.

/BI