The reeling rupees and slow market claims a new victim. India’s automotive major Maruti Suzuki for the second time in 2013 has announced a price hike for its models.
Maruti Suzuki cars will become costlier by 3,000 to 10,000 INR from the first week of October. The entire product lineup of MSIL will see the hike and hike will vary according to engine specs too.
The first hike in January, 2013 by MSIL saw models become costlier up to 20,000 INR. The main reason for the price rise has been quoted as the steep rise in input costs due to the depreciating value of rupees against dollars.
According to the Maruti Suzuki officials, though the company resisted the price hike for some time the recent downturn of rupees against dollars has made the price hike inevitable and necessary. The nearing festive season and the upward trend in Indian economy due to good monsoon are expected to cushion the blow of price rise for the customers.
MSIL is the fifth manufacturer to announce price hike for the festive season to offset the effect of recent fluctuations in money. In October, Hyundai models will also see a rise of Rs 4,000 to Rs 20,000 except the recently launched Grande i10. General motors and Toyota vehicles are also set to become costlier around INR 20,000. Homegrown Tata Motors too have planned to increase prices of its passenger and commercial vehicles by around 1-1.5%.
Source: Economic Times
-by Saravana Priyan