Maruti to decide on price hike next week
15 January 2011
With rising input costs, Maruti Suzuki India (MSIL) is mulling raising the prices of its products. The top management of the company is expected to decide on this at a meeting scheduled for next week.
According to a senior company executive the rise may not be across the entire range, though the new prices would take effect immediately following the decision.
Earlier, while announcing the results for the quarter ended September, the company had admitted to profit margins being under squeeze due to increasing commodity prices.
MSIL had reported a net profit of Rs598.20 crore which was an increase of 4.95 per cent while the cost of raw material and components had risen to Rs6938.88 core in the quarter from the earlier Rs5254.89 crore. The company has already revised prices twice in this financial year.
Tata Motors, has hiked prices from this month. While the company's passenger cars will now cost between Rs3,000 and Rs15,000 more, its commercial vehicle prices would rise in the range between range between Rs1,500 and Rs 30,000.
Mahindra & Mahindra is also increasing prices of all its products from this month though the quantum of the increase has not yet been announced. Rajesh Jejurikar, chief executive, automotive division, M&M said the company was considering increasing the prices of its products this month and the exact quantum of the rise would be announced soon.