Bengaluru: India’s top carmaker Maruti Suzuki India hiked prices by 0.45% amid slowing down demand for its cars, Reuters reported.
However, the rise in price is much lower than its previous hike in January last year.
Towards the end of 2023, Maruti and other carmakers reportedly announced plan to raise prices over increase in commodity costs.
The company’s ‘sluggish sales’ is reportedly linked to failure in its traditional customers’ income levels to match with rising prices of goods.
However, market analysts predicts that sales of passenger vehicle will ‘grow around mid-single digits this fiscal’.
But in the next fiscal, sales are likely to slow down more, which comes after surge in the last fiscal linked to pent-up demand from COVID.
The last year, the company, majority owned by Japan's Suzuki Motor, raised prices averaging 1.1% across its models.
In January every year, automakers in India raises prices following seasonal discounts, it is reported
In December 2023, Maruti offered discounts on its ‘lesser-priced models by 40-45%’, which is partly attributed to low demand for ‘entry-level vehicles’, according to the report.