Maruti Suzuki To Raise Prices Next Week

By By: Vicky.in

Published: Wednesday, January 19, 2011, 14:37 [IST]

The year 2010 was a rapid phase in terms of sales for automobile makers by which there was an increase of 30% volume. The dawn of 2011 seems to have created much tussles for them as they are facing a mild threat by way of the compulsive price rise. Almost all the companies are on the price rise mode to compensate the higher input costs and components by which they have fixed the rise by 1-2%. The market leader in car segment in India, Maruti Suzuki has already revised the prices of its vehicles and the effect will be made some time next week.

The company"s meeting session will decide the exact value of rise, said an official from Maruti, claiming that some models will be spared from the proposed rise. Once the rise is ratified, then it will be in force the next moment, he added.

The earlier alarm from Maruti came when it announced the performance appraisal for the period ending September 2010. The company hinted the fall in margins due to the rising price of the input costs. During that quarter, Maruti reported 4.95% rise in its net profit of Rs 598.20 crore. However, the company had to spend Rs 6938.88 crore for the commodities and raw materials from Rs 5254.89 crore forcing it to effect price rise twice in 2010. Yet, Maruti Suzuki is not the only car maker to effect the price rise as M&M, Hyundai, Tata Motors and GM too have come out with price rise for the same reasons. GM said that its vehicles will be costlier by 1.5 - 2.5% from mid-January. Volkswagen announced that it will rise the cost of its vehicles Polo by 2.9% effective January 2011.

Article Published On: Wednesday, January 19, 2011, 14:01 [IST]

Read more on: #anjana #auto news #maruti suzuki

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