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Maruti Suzuki set to hike prices in May
New Delhi, April 21, 2008
Reeling under intense pressure from rising input costs,
especially that of steel, the country`s largest carmaker
Maruti Suzuki has decided to hike prices from the first week
of next month.
According to sources, the company`s sales department has
written to dealers to be prepared for the imminent price hike
and exhaust existing stocks before the new prices come in.
"There has been a continuous increase in the steel and
commodity prices in the past few months. As a result our input
costs have increased substantially. We have been trying to
absorb this increase in the input costs, but now we are forced
to pass on a part of this increase to the customers," the
company`s letter to dealers said.
The company, however, is still in the process of finalising
the quantum of the proposed hike on different models. "The
amount of increase is likely to be substantial and will
increase the ex-showroom price by the first week of May," the
letter added.
When contacted, MSI officials confirmed that the cost
pressures were mounting due to increase in input costs, but
refused to elaborate further on the issue.
The company had last increased the prices of its cars in
February 2008 ranging between Rs 1,000 and Rs 11,000
(ex-Showroom, Delhi) across most of its models.
It, however, reduced prices in its six models following the
excise duty reduction announced in the Budget on small cars
from 16 percent to 12 percent. Maruti 800, Omni, Zen, Wagon R,
Swift Diesel and Alto that qualify for the lower excise
benefit, saw the price reduction ranging between from Rs 6,500
and Rs 18,030.
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