Maruti Suzuki, the car manufacturer, in India recently unveiled its intention to hike the prices of its vehicles starting from January 2024. The company attributes this decision to factors such as inflation and the escalation of commodity prices. In a statement Maruti Suzuki emphasized its commitment to cost management and absorbing the consequences. Acknowledged that it may have to pass on some of these increased expenses to consumers.
“The company has announced its plan to implement price increases for its cars in January 2024. This step is driven by mounting cost pressures stemming from inflation and the upward trend, in commodity prices. While the company is striving to minimize costs and mitigate the impact there may be a need to transfer some of these adjustments onto our valued customers ” stated Maruti Suzuki.
The upcoming price adjustment will differ across car models as part of the company’s approach to adapt to the changing economic landscape. Despite facing cost conditions Maruti Suzuki reported its ever monthly domestic shipments, in October with a notable 21% increase compared to the same period last year (147,072 units). Additionally, total domestic sales of passenger vehicles rose from 140,337 units in October 2022 to 168,047 units in October 2023.
Maruti Suzuki showcased performance in the second quarter ending on September 30 2023. They reported a 80.3% increase, in net profit compared to the same period last year. This growth can be attributed to sales, lower commodity prices, cost reduction initiatives and increased non-operating income. The profit after tax (PAT) for the period year was recorded at Rs 2,061.5 crore.
Furthermore, Maruti Suzukis revenue from operations experienced growth rising by 23.8% compared to the year and reaching Rs 37,062 crore. This emphasizes the companys ability to navigate market dynamics and capitalize on factors, like cost management and strong sales performance.
With the changing conditions, in the automotive industry Maruti Suzuki has taken a proactive stance to tackle cost challenges while ensuring efficient operations. This strategic approach places them in a position for growth and resilience, amidst a dynamic market environment.