Maruti to hike prices in January 2022

Automaker Maruti Suzuki informed the exchanges on Thursday that it will be hiking prices in January 2022.

"Over the past year, the cost of Company's vehicles continue to be adversely impacted due to increase in various input costs. Therefore, it has become imperative for the Company to pass on some impact of the above additional costs to customers through a price hike," the company said in an exchange filing.

The statement further read "The price rise has been planned in January 2022. The increase shall vary for different models."

"Material cost is an important cost in the overall cost structure for any OEM (original equipment manufacturer). Normally, 70-75 per cent of the total cost of an OEM is material cost. In the second quarter, our material cost to net sales ratio had gone up to a very high figure of 80.5 per cent. This is unprecedented," Maruti Suzuki India Senior Executive Director (Marketing and Sales) Shashank Srivastava told PTI in an interview earlier in November.