Maruti Suzuki has increased prices of all its models (except the Dzire sedan) with effect from January 16th, 2012. The price hike ranges from 0.3 per cent to 3.4 per cent on the cars ex-showroom prices depending on the model and the variant. The company stated that prices have been hiked due to rising input costs and depreciation of the rupee.
Several car makers including Mahindra have hiked prices of their cars this month due to rising input costs.
The prices are being hiked at a period when the demand for cars is slowing down. This, besides higher interest rate for car loans will turn down potential buyers. The auto industry may hence witness a slow growth rate during the first half of this year.
However, with several new car launches in emerging segments such as the compact SUV and compact MPV segments, sales may spring up during the second half of the year. The upcoming Union Budget will likely play a pivotal role in determining the prices of diesel cars and small cars as there could be tax revisions as well.
The following table shows the estimated hike of Maruti cars based on dealer feedback.
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*The price hikes mentioned above are estimated only. Actual price hike may vary.