Maruti cars to be expensive from 2016

The largest carmaker to hike prices up to Rs 20,000

Maruti cars to be expensive from 2016

Your car purchase is set to get costlier in the New Year! Joining its rivals, India’s largest carmaker Maruti Suzuki India is gearing up to increase prices of its vehicles in all segments from January.

 The price increase will be in the range of up to Rs 20,000. If this happens, it will be the third straight hike in prices by Maruti in a span of 13 months.

Prior to this, in August, the company had increased prices in the range of Rs 3,000 to Rs 9,000 across the models except the newly launched S-Cross.Before that, in January this year, Maruti had hiked prices of its vehicles by up to Rs 31,600 following expiry of excise duty concessions extended to auto makers by the government on Decemeber 31, 2014.

 “The price increase has been necessitated on account of increase in costs due to weakening of rupee against the dollar, rise in administrative and other costs,” a Maruti Suzuki India spokesperson said. Auto firms such as Hyundai, Honda, Toyota, Nissan, Skoda and Mercedes-Benz too have announced plans to increase prices next month.

A weaker rupee against the US dollar, and the Japanese yen coupled with the increase in cost of components have forced companies to raise prices, industry sources said. Sources said that weakening of Japanese yen will have a significant impact on Maruti as it has a wide exposure to the yen by ways of imports, and also royalty payment to its parent company Suzuki Motor.

Maruti sells a range of vehicles starting from the entry level small car Alto 800 to the S-Cross with prices ranging between Rs 2.53 lakh and Rs 13.74 lakh (all prices ex-showroom Delhi). Vehicle manufacturers generally announce an increase in prices in the New Year to push for the year-end sales, according to analysts. But consumers typically want to postpone their purchases for the New Year so that they do not lose an year on the registration number of their cars.

Maruti too is offering a discount of Rs 25,000 on its entry-level Alto, Rs 15,000 on Celerio, and a little less on WagonR and Ertiga. Simialrly, Hyundai, which on Wednesday announced a price increase across its models by up to Rs 30,000 in the New Year, is offering gift checks, and free insurance on some of its models.

Up they go

     In August, Maruti Suzuki  increased prices in the range of Rs 3k to Rs 9k
     Hyundai, Honda & Toyota among others, too have announced price hikes
     A weaker Re against the dollar has forced companies to hike prices

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