India’s largest carmaker Maruti Suzuki India on Tuesday said that it will increase prices of its vehicles from January to offset rising input costs.
Over the past year, the cost of the company’s vehicles has been impacted adversely due to the increase in various input costs, it said in a statement.
“Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020,” it added.
The price increase will vary for different models.
Maruti Suzuki reported a 1.9% decline in last month’s sales at 1.5 lakh units. Domestic sales declined by 1.6% to 1.43 lakh units in November as against 1.46 lakh in November 2018.
The company recently achieved the sales mark of two crore passenger vehicles in India, becoming the only company to cross the landmark figure.
For the second quarter of the current financial year (Q2 FY20), Maruti Suzuki reported a net profit of Rs 1,358.6 crore down by 39.4% compared to the same period of previous fiscal due to weak auto sales amid a slowdown in the economy.
The lower sales volume, higher sales promotion expenses and higher depreciation expenses were partially offset by cost reduction efforts, higher fair value gains on invested surplus and reduction in the corporate tax rate.
(With ANI Inputs)