Maruti Suzuki announced on November 27 its decision to raise the prices of its cars in January 2024, attributing the move to heightened cost pressures stemming from overall inflation and escalating commodity prices.
In a regulatory filing, India's largest carmaker emphasized its intent to counter increased expenses through internal cost-cutting measures. However, acknowledging the prevailing economic conditions, the company conceded the necessity of passing on a portion of the cost escalation to consumers.
Maruti clarified that the price adjustments would differ across its range of models, indicating varying increases based on individual vehicles.
The automobile giant had previously disclosed its record-breaking monthly sales figures in October, marking a substantial 19% year-on-year growth with 1,99,217 units dispatched. Specifically, the domestic market saw commendable performance, achieving its highest-ever monthly sales of 1,77,266 units, reflecting a remarkable 21% increase from the previous year.
Additionally, Maruti Suzuki reported a notable 80.3% year-on-year surge in standalone net profit for the quarter ended September 30, 2023. This growth was attributed to factors like increased net sales, reduced commodity prices, cost-cutting initiatives, and higher non-operating income. The company's profit after tax (PAT) for the corresponding period last year stood at Rs 2,061.5 crore.
The financials for the quarter revealed a robust 23.8% surge in revenue from operations, reaching Rs 37,062 crore compared to Rs 29,930.8 crore in the corresponding period the previous year, highlighting Maruti Suzuki's continued growth trajectory despite prevalent market challenges.
