Maruti Suzuki and General Motors (GM) have both announced a price increase on their cars for the third time this fiscal citing erosion of profit margins because of currency fluctuation and rising input costs. The new prices are effective from January 16.
Market leader Maruti raised prices in the 0.3 – 3.4 per cent range, with the highest increase of Rs 17,100 seen in the popular diesel variant of the new Swift hatch. On an average, prices went up 2 per cent, with the lowest increase seen in the Omni van at Rs 2,300.
GM increased prices by 0.75 – 1.75 per cent for its Chevrolet branded models; the Cruze mid-size sedan becoming more expensive by Rs 15,000, while prices for the Beat petrol hatch are higher by Rs 4,000-7,000 and the fast-selling new diesel variant saw an up to Rs 10,500 price increase.
The Tavera utility vehicles, currently only sold in a BS III version, saw an up to Rs 13,000 price increase, while the Spark is now dearer by Rs 3,000. The Aveo, U-Va and Optra have not seen price hikes.
While Toyota Kirloskar has already increased model prices by up to 3 per cent from January 1, a Hyundai spokesperson said that it has “still not taken a decision” on whether to revise prices.
“We are under pressure from both the depreciating rupee and an appreciating yen. This is the third time prices have been raised in 2011-12 — April, October and now January,” Mr Sandeep Singh, Deputy Managing Director for Marketing, Toyota Kirloskar said.