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      No Price Increase in Maruti Models

      Payal Pathak

      Payal Pathak

      Maruti Suzuki will not increase price of its model in near future. There has been nearly 20-30 percent increase in the input costs in past months but the company plans to cut down its margins and retain current pricing absorbing the rising input costs.

      There has been constant pressure on India’s largest car manufacturers to keep competing strongly in the Indian market which is witnessing new entrants nearly every month. These entrants are largely in the small car segment which attributes to nearly two-third of the total sales figure in the country.

      MSIL wants to retain its pricing edge in the market as well as more than 50 percent market share. Thus, its strategy involves absorbing rising costs and expansion of its sales and service network pan India.

      "Right now, I am not thinking of any price increase. We will absorb the raw material price hike as much as possible. Definitely, there is pressure on margin. The competition is tough but because of it, the market is moving. There is always pressure on market share and we will defend it," said Shinzo Nakanishi MD CEO, Maruti Suzuki India Limited.

      The latest perceived threat to Maruti models is the new Toyota Etios which will be introduced on December 01. The car is expected to be priced at Rs. 5 lakh and above and will compete head on with Swift Dzire.

      Maruti Suzuki