Maruti Suzuki To Hike Car Prices By Up To 4% From Jan. 1, Shares Climb
The increase in prices will vary depending on the model, Maruti Suzuki said. Following the announcement, its share price jumped over 1.5%.
Automobile major Maruti Suzuki India Ltd. on Friday announced that it would be raising the prices of its cars by up to 4%, starting from Jan. 1, 2025. The announcement led to the four-wheeler maker's shares climbing by over 1.5% on the exchanges.
"In light of rising input costs and operational expenses, the company has planned to increase the prices of its cars from January 2025. The price increase is expected to be up to 4% and will vary depending on the model," Maruti Suzuki said in a regulatory filing.
"While the company continuously strives to optimise costs and minimise the impact on its customers, some portion of the increased cost may need to be passed on to the market," it added.
Notably, Maruti Suzuki had dispatched 10% more cars to dealerships in November as compared to last year, despite lacklustre demand in the auto industry.
The total sales logged by India's largest carmaker stood at 1,81,531 units last month as against 1,64,439 in the year-ago period—an increase of 10.39% year-on-year, according to an exchange filing on Dec. 1.
The total domestic car sales climbed 5.3% on-year to 1,41,312 units, whereas the overall export sales jumped 24.8% on-year to 28,633 units.
Maruti Suzuki Share Price Today
Maruti Suzuki's share price was trading 1.58% higher at Rs 11,359.25 apiece on the National Stock Exchange at 12:35 p.m. In comparison, the benchmark Nifty 50 was almost flat, rising marginally by 0.03%.
Over the past 12 months, Maruti Suzuki's stock has climbed by 6.9%, whereas the surge has been of 10.2% on a year-to-date basis.
Among the 48 analysts tracking the company, 35 have a 'buy' rating on the stock, 10 suggest a 'hold', and three recommend 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 16.9%.
