Maruti Suzuki India has announced its decision to raise vehicle prices in January 2024, citing cost pressures driven by overall inflation and increased commodity rates. The company, which offers a diverse range of vehicles with prices ranging from ₹3.54 lakh to ₹28.42 lakh (ex-showroom Delhi), including popular models like the small car Alto and the multi-utility vehicle Invicto, disclosed this information in a regulatory filing.
In the statement, Maruti Suzuki India stated, “The company has planned to increase the prices of its cars in January 2024 on account of increased cost pressure driven by overall inflation and increased commodity prices.”
While the company endeavors to minimize costs and absorb the increase, it acknowledges the possibility of passing on some of the increase to the market, noting that the extent of the price hike would vary across models.
The exact quantum of the upcoming price adjustment was not disclosed in the announcement. Other automakers are also contemplating price adjustments due to rising input and operational costs. German luxury car manufacturer Audi, for instance, declared an impending price hike of up to 2 percent for its vehicles in India from January 1, 2024.
In parallel developments, Maruti Suzuki India reported that its board has approved the allotment of over 1.23 crore shares to its parent company, Suzuki Motor Corporation (SMC), on a preferential basis. This move is part of the buyout of Suzuki Motor Gujarat.
The board approved the allotment of 1,23,22,514 shares to SMC at a face value of ₹5 each, priced at ₹10,420.85 per share. The valuation report by RBSA Valuation Advisors LLP indicated that the approved price per share is equivalent to ₹12,841.1 crore in value terms.
Following this allotment, SMC’s stake in Maruti Suzuki India (MSI) will increase to 58.19 percent from the previous 56.48 percent.