Maruti Suzuki PRICE HIKE from September - THIRD increase in 2021 amid rising input cost; stock up over 2.5%

For the third time in a year, Maruti Suzuki India Limited (MSIL) on Monday announced a price hike from September 2021 without revealing the details amid the rising input cost. India’s largest carmaker earlier in January and April had also announced a price rise across variants earlier this year.

“Over the past year, the cost of company's vehicles continues to be adversely impacted due to increase in various input costs. Hence, it has become imperative to pass on some impact of the additional cost to the customers through a price rise,” Maruti Suzuki in its statement said.  

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The price rise has been planned across models in September 2021, the car manufacturer said without revealing any quantum of the price increase.

The company had increased the prices of its vehicles in January and April. On January 18, the automaker had hiked prices of some models by up to Rs 34,000, while on April 16, it announced a 1.6 per cent weighted average increase in ex-showroom prices (Delhi) across models.

The shares of Maruti jumped over 2.5 per cent to Rs 6775 per share on the BSE intraday trade as compared to around a 1 per cent rise in the S&P BSE Sensex on Monday. The stock had hit Rs 8400 per share as 52-week high on January 13, 2021.

The stock is one of the top gainers intraday on the Auto Index and Nifty Index both, lifting both indices amid the price rise news.

The auto major is supposed to release its August monthly sales this week along with other auto manufacturers. The company in July registered a total sale of 1.6 lakh units, which includes domestic sales of 1.36 lakh units, OEM sales of 4,738 units, and exports of 21,224 units.