NEW DELHI: Reeling under intense pressure from rising input costs, especially that of steel, the country's largest carmaker Maruti Suzuki has decided to hike prices from the first week of next month.
According to sources, the company's sales department has written to dealers to be prepared for the imminent price hike and exhaust existing stocks before the new prices come in.
"There has been a continuous increase in the steel and commodity prices in the past few months. As a result our input costs have increased substantially. We have been trying to absorb this increase in the input costs, but now we are forced to pass on a part of this increase to the customers," the company's letter to dealers said.
The company, however, is still in the process of finalising the the quantum of the proposed hike on different models. "The amount of increase is likely to be substantial and will increase the ex-showroom price by the first week of May," the letter added.
When contacted, MSI officials confirmed that the cost pressures were mounting due to increase in input costs, but refused to elaborate further on the issue.
The company had last increased the prices of its cars in February 2008 ranging between Rs 1,000 and Rs 11,000 (ex-Showroom, Delhi) across most of its models.
It, however, reduced prices in its six models following the excise duty reduction announced in the Budget on small cars from 16 per cent to 12 per cent. Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto that qualify for the lower excise benefit, saw the price reduction ranging between from Rs 6,500 and Rs 18,030.
