Business
Maruti Suzuki Increases Prices for All Models Due To Declining Auto Demand
By - 16 Jan 2024 05:46 PM
Bengaluru: The nation's largest automaker, Maruti Suzuki India, raised the prices of its models by 0.45% on Tuesday, a significant decrease from the increase it made in January of last year, suggesting that demand for its vehicles is slowing down.
In late 2023, Maruti and its competitors announced that they would be raising prices starting in January because of rising commodity prices.
The company, which is primarily owned by Suzuki Motor of Japan, has struggled with slow sales in the small car market as the income levels of its regular customers haven't kept up with the rising costs of consumer goods and automobiles.Analysts predict that after a spike in sales in the previous fiscal year brought on by pent-up demand because of COVID, passenger vehicle sales will grow by about mid-single digits this fiscal year and then decline further in the following.
The Swift hatchback's manufacturer raised prices by more than twice the most recent increase, 1.1% on average, across its whole vehicle lineup in January of last year.
Automakers in India increase the prices of their vehicles in January every year after attempting to woo customers with seasonal discounts.
Considering the year-end, coupled with low demand for entry-level vehicles, Maruti increased discounts on its lesser-priced models by 40-45% in December 2023.
