Maruti Suzuki India Ltd. will raise its vehicle prices in the first week of October to offset higher input costs, caused mainly by a sharp fall in the local currency's value, a senior executive said Wednesday.
Maruti's cars—ranging from the entry-level Alto subcompact hatchback to the SX4 midsize car—would cost up to 10,000 rupees ($160) more after the price increase, the executive told The Wall Street Journal.
Maruti, India's largest car maker by sales, follows Ford Motor Co., Hyundai Motor Co.,General Motors Co. and Tata Motors Ltd. in increasing prices.
The value of India's rupee currency had fallen about 20% against the dollar between Jan. 1 and the end of August, when it hit an all-time low. The rupee has since recovered some lost ground, but is still down about 12%.
A weak rupee adds to inflation by swelling the cost of imported parts for companies such as Maruti as well as for their auto-parts suppliers.
Fuel retailers have also increased the prices of diesel, the fuel used by trucks to transport vehicles.
Maruti's cars—ranging from the entry-level Alto subcompact hatchback to the SX4 midsize car—would cost up to 10,000 rupees ($160) more after the price increase, the executive told The Wall Street Journal.
Maruti, India's largest car maker by sales, follows Ford Motor Co., Hyundai Motor Co.,General Motors Co. and Tata Motors Ltd. in increasing prices.
The value of India's rupee currency had fallen about 20% against the dollar between Jan. 1 and the end of August, when it hit an all-time low. The rupee has since recovered some lost ground, but is still down about 12%.
A weak rupee adds to inflation by swelling the cost of imported parts for companies such as Maruti as well as for their auto-parts suppliers.
Fuel retailers have also increased the prices of diesel, the fuel used by trucks to transport vehicles.
Credits: http://online.wsj.com
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