Maruti sets stage for price hikes in 2024

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Maruti Suzuki India Ltd on Monday said it will raise prices beginning 1 January, setting the stage for similar hikes by rival automakers. The company attributed the move to higher commodity costs and steep inflation, but did not specify the quantum of price hike for specific models. “Steel prices have firmed up a little over the last 3-4 months, which accounts for around 38% of our commodity buying.

We have been estimating the impact of the volatility of commodity prices on our costs, and trying to cut costs internally and then take price hikes as a last resort. We are observing volatility mainly in commodities and we also observe inflationary trends will be on the higher side," Shashank Srivastava, senior executive director, Maruti Suzuki said in an interview. Automakers typically raise prices of passenger vehicles in the new year to coincide with model year changeover, or the new financial year.

Executives of other automakers also confirmed their price hike plans. “Based on the inflation and commodity prices outlook, we intend to take a price increase for our automotive products effective January 2024 , the details for which will be announced closer to the time," Nalinikanth Gollagunta, CEO, automotive division, Mahindra and Mahindra said. M&M is evaluating price hikes for its farm equipment business as well.

“We are constantly monitoring input economic parameters playing out in the market and any decision regarding price adjustments will be made after careful consideration of the prevailing economic scenarios," Hemant Sikka, president, farm equipment sector, Mahindra and Mahindra said. Tata Motors too said it will raise prices across its passenger vehicle and electric vehicle range at the start of the new year. A Tata