October 12, 2008

Maruti Suzuki to hike prices from first week of May 2008

PTI reported that, reeling under intense pressure from rising input costs Maruti Suzuki has decided to hike prices from the first week of May 2008.

According to sources, Maruti's sales department has written to dealers to be prepared for the imminent price hike and exhaust existing stocks before the new prices come in. The letter read that "There has been a continuous increase in the steel and commodity prices in the past few months. As a result our input costs have increased substantially. We have been trying to absorb this increase in the input costs, but now we are forced to pass on a part of this increase to the customers. The amount of increase is likely to be substantial and will increase the ex-showroom price by the first week of May 2008."

Maruti Suzuki had last increased the prices of its cars in February 2008 ranging between INR 1,000 and INR 11,000 across most of its models. It, however, reduced prices in its 6 models following the excise duty reduction announced in the Budget on small cars from 16% to 12%.

Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto that qualify for the lower excise benefit, saw the price reduction ranging between from INR 6,500 and INR 18,030.