The country’s biggest car manufacturer is thinking about another price hike to counterbalance the expense increment because of an increase in raw material costs. Maruti Suzuki has previously increased prices four times since Jan 2021, totalling a practically 9% increment, the most elevated at any point price hike presented by the carmaker in a year.
“High commodities prices obviously put pressure on profitability. Therefore, we are closely watching the situation and will take action accordingly. We have to walk the fine line between top-line and bottom-line,” Shashank Srivastava, senior executive director of Maruti Suzuki India said.
It is normal that others will likewise follow the market chief. Looking at the current situation of commodity prices, the price increase is certainly on the cards,” Veejay Nakra, CEO at Mahindra & Mahindra, automotive sector, said.
For carmakers, raw material is very nearly 75-78% of the expense, which has seen a consistent ascent in the course of the most recent couple of months, and with the new international circumstance, it keeps on being uncertain.