Maruti Suzuki India, an automaker, announced on Friday that it intends to raise prices on all its models starting in January 2023. It cited cost challenges brought on by inflation and regulatory obligations.
The automaker said in an exchange filing, “While the company makes the maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impacts through a price increase. The company has planned this price increase in January 2023 which shall vary across models.”
In November 2022, the carmaker recorded a 14% year-over-year increase in total sales. Compared to the same month last year, Maruti Suzuki sold 1,59,044 cars in November of this year. The total includes exports, sales to other OEMs (4,251 units), and domestic sales (1,35,055 units) (19,738 units).
Although sales were increasing, the lack of electric components had an influence on domestic model production. The automaker said, “The shortage of electronic components had a minor impact on the production of vehicles, mainly in domestic models. The company took all possible measures to minimise the impact.”
Domestic sales for the company increased 18% to 1,39,306 units from 1,17,791 units in November of last year. Alto and S-Presso sales increased from 17,473 to 18,251 units in the same month the previous year.
Swift, Celerio, Ignis, Baleno, and Dzire sales, which make up the compact sector, increased from 57,019 units in November of the previous year to 72,844 units in November. In November of this year, sales of utility vehicles (such as the Vitara Brezza, S-Cross, and Ertiga) increased to 32,563 units, compared to 1,554 units for the mid-sized sedan Ciaz.
In contrast, exports decreased to 19,738 units from 21,393 units in the same month last year. On the BSE, Maruti Suzuki India shares dropped 1.58 per cent to 8,815 each.