Due to rising input costs, the automaker said on Thursday that it plans to raise pricing for certain models starting in January 2022.
Increases in different input prices have influenced the cost of Maruti Suzuki India’s automobiles during the last year, according to the firm. As a result, it has become necessary to pass on part of the higher cost to consumers in the form of a price increase. Separately, owing to the addition of a passenger airbag, the business announced a price increase of Rs 8,000 in the EECO automobile model (all non-cargo versions) beginning November 30, 2021.
Due to rising input prices, the automaker announced a price increase across all models in September 2021. The automaker said on December 1, 2021 that overall sales in November 2021 were 1,39,184 units, down 9.16 percent from 1,53,223 units in November 2020. Domestic sales of 1,13,017 units (down 18.67 percent Y-o-Y), sales to other OEMs of 4,774 units (down 9.29 percent Y-o-Y), and exports of 21,393 units were among the month’s total sales (up 137.59 percent Y-o-Y).
In November 2021, the automaker’s total output (passenger cars plus light commercial vehicles) declined 3.10 percent to 1,45,560 units, down from 1,50,221 units in November 2020. “During the month, a scarcity of electronic components had a slight influence on vehicle manufacturing. The scarcity mostly impacted automobile manufacturing for the domestic market. The business took every precaution to lessen the damage “In a statement, Maruti Suzuki India stated.
Meanwhile, due to a shortage of electronic components, the automaker expects a negative effect on vehicle manufacturing in Haryana and Gujarat in December 2021. “The company expects an adverse impact on vehicle production in the month of December 2021 in both Haryana and its contract manufacturing company, Suzuki Motor Gujarat (SMG) in Gujarat, due to a supply constraint of electronic components due to the semiconductor shortage situation,” the automaker said in a statement on Tuesday, November 30, 2020.
Despite the fact that the situation is fluid, it is presently projected that overall car production volume across both sites will be about 80% to 85% of typical output, according to the report.
Maruti Suzuki India’s stock fell 0.09 percent to Rs 7,268.10 on the BSE. Maruti Suzuki India is a company that manufactures, buys, and sells cars, parts, and accessories (automobiles).
In Q2 FY22, the carmaker’s net profit fell 65.7 percent to Rs 486.90 crore, compared to Rs 1,419.60 crore in Q2 FY21. During the quarter, net sales increased 9.1% year on year to Rs 19,300.50 crore.