Maruti Suzuki India | Representative image
Maruti Suzuki share price was up over 4 percent in the morning session on June 22, a day after the auto maker said it will raise car prices in July-September quarter.
Maruti Suzuki, India’s largest manufacturer of passenger vehicles, will increase car prices in the July-September quarter to offset input price hikes.
“Over the past year, the cost of the company's vehicles continues to be adversely impacted due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of additional cost to customers through a price rise. The price rise has been planned in quarter 2 and the increase shall vary for different models,” Maruti Suzuki said in a statement.
Also Read: Maruti Suzuki to raise car prices in July-September quarter
This will be the second round of price increase by the Delhi-based company in this financial year. The maker of Swift and Baleno had raised prices by around 1.6 percent in the April-June quarter. The price was raised to mitigate the jump in input costs.
The stock was the top index gainer, and was trading at Rs 7,194.50, up Rs 293.00, or 4.25 percent. It has touched an intraday high of Rs 7,211.90 and an intraday low of Rs 6,932.55.
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The country's largest carmaker reported a 71 percent decline in total sales to 46,555 units in May as compared to 1,59,691 units in April as a spike in COVID-19 cases and lockdowns across various states hit dispatches.
The auto major had also shut production from May 1 through May 16 so as to divert oxygen from industrial use for medical purposes. MSI said its domestic dispatches to dealers last month stood at 35,293 units, down 75 per cent from 1,42,454 units in April.
Exports in May were down 35 per cent at 11,262 units as against 17,237 units in April this year. "In May, the company shut production from May 1 through May 16 so as to divert oxygen from industrial use for medical purposes. In May 2020, the company witnessed production disruption owing to lockdowns. Since neither of the two months had normal production, the sales volume of May 2021 are not comparable with May 2020," MSI noted.