Maruti Suzuki, India’s largest passenger vehicle manufacturer, has announced an increase in the prices of all its passenger car models in India. The price hike, which amounts to a 0.45% increase per car model, will take effect from today. Maruti Suzuki has attributed the price hike to rising inflation and increased costs of raw materials. The company had already hinted at a price increase in November last year.
In addition to Maruti Suzuki, other car manufacturers such as Tata Motors, Honda, Mahindra, Hyundai, SKODA, and Audi have also increased the prices of their cars. Tata Motors, for example, has raised the prices of three popular commercial vehicles ★Ace, Intra, and Winger ★from January. Automotive experts believe that the price hikes by multiple companies could lead to a decline in the sales of passenger vehicles this year. They predict a slowdown in sales even towards the end of the current fiscal year.
According to the recent sales report for December 2023, Maruti Suzuki witnessed a 1.28% decline in sales. In December 2023, the company sold 137,551 units compared to 139,347 units sold in the same month the previous year. Furthermore, there has been a 29% decline in the sales of small hatchbacks like the Alto and the Celerio compared to December 2022.
The price hikes and the decline in sales are causing concerns among industry experts. They believe that these factors could impact the overall performance of the passenger vehicle segment in the coming months. However, it remains to be seen how the market will respond and whether customers will continue to purchase cars despite the price increases.
