NEW DELHI: On Monday, Maruti Suzuki said that starting on January 16, all of its model prices would increase by roughly 1.1%. Due to growing cost pressure brought on by general inflation and new regulatory obligations, the company stated in December 2022 that it would raise prices in January.
The company had previously stated that while it made "every effort to cut costs and partially offset the increase," it has become necessary to pass on some of the burdens through a price hike. Due to rising input costs, automakers have been frequently raising prices over the past few years.
According to Mansi Lall, a research analyst at Prabhudas Lilladher, "the price hikes that automakers have implemented are a big jump for purchasers in lower-to-medium income categories." In addition, the industry is becoming cautious due to the rising interest rates, the unfavorable state of the world economy, and the potential effects on India.
Additionally, the industry is being cautious due to concerns such as rising interest rates, an unfavourable global economic climate, and its potential effects on India in the near future.
"Price increases almost always have a negative effect on sales. However, it is still unclear how much prices would increase and what will happen to input costs and foreign exchange. These are ambiguities that are permanent "Chairman of Maruti Suzuki India, R. C. Bhargava, informed the reporters.
However, he claimed that in recent months, the local auto sector has recovered and that in 2023, the shortages of semiconductors would also end. "Combining all of the information, we believe that the industry will likely have a reasonably strong year in 2019. We ought to perform at least as well as 2022, if not better, in my opinion, "Bhargava stated.
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