Maruti Suzuki to Hike Car Prices in July-September Quarter
A Brief Overview –
Maruti Suzuki India has decided to increase the price of its vehicles in the July-September quarter (i.e., the second quarter of the financial year 2022). This decision stems from its desire to pass forward the higher input costs associated with their cars. The quantum of this increase has not been made public knowledge thus far.
Maruti Suzuki’s Share Prices Rise
Maruti Suzuki India witnessed its shares rise by 4.5 percent such that they amounted to INR 7,211.90 on the Bombay Stock Exchange during intra-day trading at the end of last month. This rise in stock price occurred following the statement made by the company to increase the price of its vehicles in the second quarter of FY 2022 such that it could move forward with its higher input cost.
The aforementioned rise witnessed on the Bombay Stock Exchange is in stark contrast to the 0.91 percent rise visible on the S&P of the Bombay Stock Exchange Sensex. 644,000 shares were observed to be swapped by traders on the National Stock Exchange and Bombay Stock Exchange with trading volumes pertaining to the counter surpassing a doubled amount.
Maruti Suzuki India’s Vehicle Prices to Rise
During an exchange filing, Maruti Suzuki India made clear that the costs associated with their vehicles have continued to be affected owing to a rise in varied input costs. This reason has made it imperative for Maruti Suzuki to pass this additional cost on to customers via a price rise. The company also made clear that the rise in the price of its vehicles would occur in the second quarter and that the increase would vary based on the car model in question.
The calendar year 2021 has already witnessed price hikes brought forth by Maruti Suzuki vehicles. Their newest move to alter prices could have a ripple effect and cause similar price adjustments across the passenger vehicle industry.
About Maruti Suzuki India
Automobile manufacturer Maruti Suzuki India retains a 56.37 percent ownership in the car and motorcycle manufacturer Suzuki Motor Corporation which is of Japanese descent.
Maruti Suzuki India is recognized as 0ne of the biggest passenger car companies today. It’s popularity is evident in the fact that over 50 percent of the Indian car market frequents its wares.
Other Pertinent Information
The stock for Maruti Suzuki India hasn’t been performing at its desired levels on the market owing to its losing out on market share. Although it experienced a 4.5 percent gain last month, its stock only witnessed a rise of one percent over the past three months in comparison to a 6.6 percent incline in the S&P Bombay Stock Exchange Sensex. Over the past six months, the stock of Maruti Suzuki India has fallen 3 percent in comparison to a 15 percent rally via the benchmark index.
Conclusion –
The next few months leading up to the second quarter of FY 2022 and the months following the price hikes in the vehicles should be interesting to observe. Those interested in cars and those who own the same must protect themselves with car insurance through trusted platforms such as Finserv MARKETS. Here, you can also look for Maruti insurance for Maruti Suzuki cars.
