Maruti Suzuki will hike prices of its range of cars by 2 to 4 percent from January 2015. This price hike is mainly due to input costs that have increased.
India's largest carmaker, Maruti Suzuki has joined other carmakers like Hyundai, BMW and General Motors who have also announced the price increase of up to 5 percent from January.
Society of Indian Automobile Manufacturers (SIAM) had earlier mentioned that car sales would grow between 5 to 10 percent this year, but only managed to grow a mere little less than 4 percent.
The low sales in passenger vehicles will not stop the companies from hiking prices because input costs or production charges are high, which is leaving a big dent in profits.
The government of India had earlier announced a cut in excise duty, to boost car sales in India. This excise duty cut which was intended to last only till June, was further extended till December this year. Carmakers are requesting the government to extend the excise duty cut for a little longer.
Mahindra, the country's largest utility vehicle manufacturer has increased prices in November already for its passenger and commercial vehicles, and tractors to keep up with rising input costs.