Maruti Suzuki Announces Price Increase for Next Month Due to Rising Production Costs

Maruti Suzuki is set to raise prices for all its models in the Arena and Nexa lineup starting from April 2023. This will be the second price increase from the company in 2023, following the previous one in January. The decision was made due to rising production costs.

Srivastava mentioned that Maruti Suzuki has incorporated seven minor price hikes since January 2021, primarily driven by the surging material costs, which contribute to 75% of the OEM cost structures. However, to prevent adverse effects on the PV industry's demand, the company has been cautious and refrained from significant price hikes. "Our intention is not to jeopardize the overall demand in the PV industry," stated Srivastava, elucidating the reasoning behind the carmaker's careful stance on price revisions.

Maruti has reported that the company is facing greater financial pressure due to inflation and regulatory requirements. Despite taking measures to lower costs and partially offset the impact, the company has found it necessary to implement a price increase in order to cope with the rising expenses.

Maruti Suzuki raised its model prices by a maximum of 1.1% in January, with the new prices taking effect from 16th January. As a result, the cost of the models increased by as much as Rs 21,000. Additionally, Maruti plans to launch the Fronx and Jimny in the upcoming months.

Maruti Suzuki has started accepting bookings for the CNG version of its popular compact SUV, the Brezza, suggesting that its launch is imminent. Interested buyers can secure their booking by paying a nominal amount of ₹25,000.

It is anticipated that the deliveries of the Brezza CNG will commence in approximately three to four months. The Brezza CNG was first showcased by Maruti Suzuki at the Auto Expo 2023 held in January.