India's largest car manufacturer Maruti Suzuki has announced to increase the prices of its cars from January 2020. The company has said that due to rising raw material costs in the last one year, the company has been forced to raise prices. However, the company has not yet disclosed how much the price will increase.
In the information given to the stock exchange NSE and BSE, Maruti Suzuki has said that prices of different models will be different.
The company said, 'I want to tell you that due to Rising raw material prices, the cost of the company's vehicles has been adversely affected in the last one year. So now it has become a compulsion for the company that some part of this additional cost should be passed on to the customers by increasing the prices of various models by January 2020. This price increase will vary in price for different models.
Significantly, due to the decline in sales, the Indian auto sector has been struggling with difficulties for the last one year. Maruti has also seen a decline in sales for the last several months. Due to the festive season, sales in October had seen a growth of 2.3 per cent, but again in November, its passenger car sales fell by 3.3 per cent.
Not only this, other major companies like Tata Motors, Honda Cars, Eicher Motors, Mahindra have also reported a decline in November sales.
Auto industry experts say that there is little scope for improvement in sales as there is a deadline to follow the BS-6 standard in April. After April 1 next year, no vehicle of BS4 model will be sold. The cost of auto companies has also increased significantly due to adherence to the new emission standard.
Maruti sold 1,50,630 vehicles in November, while in November last year, Maruti sold 1,53,539 vehicles. During this period, the company's domestic sales fell by 1.6 percent.
Earlier, the festive season had brought some relief for the auto sector, which has been suffering from the recession for several months. From Navratri to Dhanteras, there has been a good increase in the sale of vehicles. It was expected that the boom in the auto sector will continue even further, but it could not be done. Passenger vehicles, or passenger vehicle sales, rose 0.28 per cent to 2,85,027 vehicles in October.