India's largest carmaker cites rising input costs and operational expenses for the decision, though the company states it continues efforts to minimize impact on customers through cost optimization strategies.
17 Mar 2025 | 6234 Views | By Angitha Suresh
Maruti Suzuki India Limited has announced plans to increase the prices of its vehicles by up to 4% starting April 2025. The price hike, which will vary across models, comes in response to rising input costs and operational expenses, according to a regulatory filing by the company on March 17, ...
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Maruti Suzuki India Limited has announced plans to increase the prices of its vehicles by up to 4% starting April 2025. The price hike, which will vary across models, comes in response to rising input costs and operational expenses, according to a regulatory filing by the company on March 17, 2025.
In its communication to the National Stock Exchange of India Limited and BSE Limited, the company stated that while it "continuously strives to optimize costs and minimize the impact on its customers, some portion of the increased cost may need to be passed on to the market."
The announcement comes at a time when the Indian automotive industry has been facing pressure from increased raw material prices and supply chain challenges. Maruti Suzuki, which commands approximately 40% of the Indian passenger vehicle market, typically reviews its pricing strategy quarterly to adjust for changing market conditions.
Industry analysts suggest that other automobile manufacturers may follow suit with similar price increases in the coming months as the sector continues to navigate economic headwinds including inflation and fluctuating commodity prices.
The company has not specified which models will see the highest price increases, though historically, the adjustments have varied across Maruti's product lineup, which ranges from entry-level hatchbacks to premium SUVs.
The company had, in December last year, announced a hike of up to 4% on its models, saying that input costs were on the rise and it cannot absorb all of the increases. In January, it said it would implement hikes of between Rs 1,500 to Rs 32,500 on various models with effect from February 1.
In December, Mahindra had said it would raise prices of its SUV and CV range by up to 3% starting January 2025, driven by rising inflation and increased commodity costs.
In the same month, Hyundai too had said it would hike prices across all its models by up to 25,000 rupees to mitigate the impact of rising costs. The price increase came into effect from Jan. 1, 2025.
Maruti Suzuki, a subsidiary of Japan's Suzuki Motor Corporation, operates production facilities in Gurgaon and Manesar in Haryana with a combined annual production capacity of over 1.5 million units.