Maruti Suzuki Cars Price Hike: India’s largest car manufacturer Maruti Suzuki India Limited (MSIL) recently announced that it will increase the prices of its vehicles by 4% from April 2025. This increase will be the third price increase by the company in this financial year. Earlier, in January 2025 and February 2025, Maruti Suzuki had increased the prices of its various models. Let’s know in detail about the reasons behind this price increase by the company, its impact on its consumers and industry, and potential future trends in the Indian automobile market …
Decision to increase price by Maruti Suzuki
Maruti Suzuki said in an official statement that they have to increase their vehicles prices due to increase in cost of raw materials, disruption in supply chain, and other operating expenses. The company also mentioned that different rates on different models will increase prices, which will depend on market demand and production costs.
Price hike so far in this financial year
January 2025: Maruti Suzuki had increased the prices of its vehicles by up to 4%.
February 2025: The company had increased prices of certain models from ₹ 1,500 to ₹ 32,500.
April 2025: Now, once again, prices are going to increase by up to 4%.
Major causes of price increase
1. Increase in the cost of few goods
Car manufacture requires raw materials such as steel, aluminum, copper and plastic. Over the years, the prices of these materials have been steadily increasing globally.
Rising steel prices (more than ₹ 60,000 per ton)
Increase in aluminum and copper prices high cost of electronic chips and batteries
These increased costs directly affect car manufacturers, forcing them to increase the prices of their vehicles.
2. Interruption in the Viative Supply Series
The automobile sector has been affected due to the lack of semiconductor, the increase in logistics costs, and the obstructions in global trade routes since the Kovid-19 epidemic.
Increased cost of shipping and logistics The decline in production capacity in China and other countries stress in international trade relations
3. Dealing of rupee and increase in import duty
Most automobile companies in India import some important parts and techniques from foreign markets.
The weakened of the rupee becomes expensive due to the weakening of the dollar. Automobile companies have also had to increase prices due to the imposition of new taxes on electric and hybrid vehicles by the government.
4. New Security and Emission Rules
The Government of India has recently implemented BS6 Phase 2 emission standards, making companies change their engines and emission systems. In which the production cost of engines has increased due to BS6 standards as well as adding airbags and other security features as per safety standards.
5. Increase and financial costs in rates
Car loans have become expensive due to increasing interest rates by the Reserve Bank of India (RBI), affecting the sales of new cars.
Prices increase on consumers
1. Decline in demand for new cars
Increased car prices will have a direct impact on middle class customers. They can either avoid the decision to buy a new car or seek cheap options.
2. The market of old cars will be stronger
More customers will turn to the second-hand car market due to the new cars being expensive.
3 EV (electric vehicle) segment may be promoted
Increase in prices of petrol and diesel cars can consider electric vehicles as a better option, which will benefit the EV industry.
Impact on automobile industry
1. Strategy of other companies
Other automobile companies may also declare price hike after Maruti Suzuki.
Hyundai Motor India: In January 2025, prices have increased by ₹ 25,000.
Tata Motors has increased by up to 3% in January 2025.
2. Danger of reduction in speech
Automobile companies may have to offer new offers and discounts to maintain competition in the market despite increasing prices.
Impact on dealership
Increased prices can slow the sales of cars, causing dealers to keep cars on their inventory for a long time.
future prospects
1. Green Energy and Electric Vehicles
The demand for electric vehicles in India is increasing, and this trend may be faster in the future. Maruti Suzuki is also planning to launch its first electric car by 2025.
2. Auto finance and increase in leasing
People may be attracted to car leasing and EMI schemes due to rising prices of new cars.
3. Digital sales and online car purchase
Automobile companies are now promoting online sales platforms, making it easier for customers to buy. The decision to increase prices by Maruti Suzuki is inspired by many economic, global and industrial reasons. This step has to be taken due to rising production costs, increase in raw material prices, problems in supply chain, and new government rules. However, this can have negative effects on middle class consumers, but long term it was essential for the industry. Efforts are being made to maintain balance through electric vehicles, digital sales and financial plans in the Indian automobile market. If you are planning to buy a new car, making quick decisions can be beneficial, as after April 2025 you may have to pay a higher price.
