Maruti Suzuki India (MSIL), the country's largest car manufacturer, has increased prices by up to Rs8,000, across models, except for its newly-launched compact car Alto K10, in the face of increasing input costs.
According to Shashank Srivasatava, chief general manger, marketing, material costs made up 80 per cent of the cost of production of a car. He added that increase in input costs puts pressure on profitability and though MSIL had tried to absorb the rise in costs to the extent possible, but it had to now pass it on to consumers.
The company raised prices across models between 0.5 and 2.2 per cent which translated into a jump between Rs1,000 and Rs 8,000.
The new prices take effect from Monday.
The company admitted last month that the input costs of commodities had become unbearable. According to Mayank Pareek, managing executive officer (sales and marketing), the price of natural rubber which was Rs100 per kg had gone up to Rs200 per kg while copper prices had also increased
Earlier, at the time of announcement of results for quarter ended September, MSIL admitted that profit margins were under pressure due to commodity prices.