New Delhi- Maruti Suzuki India will increase the prices of its vehicles ‘substantially’ from next month as it looks to offset the impact of rising input costs and make provisions to update the model range to conform to stricter emission norms which kick in from April 2023.
In a regulatory filing on Friday, the country’s largest carmaker said it continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements.
While the automaker makes maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price increase, it added.
The company has planned the price increase in January 2023 which shall vary across models, the auto major said without disclosing the exact quantum of the increase.
In an interaction with PTI, Maruti Suzuki India Senior Executive Officer Marketing & Sales Shashank Srivastava said that commodity prices still remain on the higher side if compared with two years ago.
“Besides there is general inflationary pressure on every input cost whether it is energy or material or manpower cost. Then there is requirement to conform to regulatory requirements,” he said.
The company needs to make models ready for second phase of BS-VI emission norms that kick in from April next year.
“We will have to start making changes in the product range. Also the price increase taken earlier was not sufficient to cover the increase in commodity prices,” Srivastava noted.
Vehicles will need to have an on-board self-diagnostic device to monitor the real time driving emission levels. The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors, to keep a close watch on emissions.
In a scenario wherein the emissions exceed the parameters, the device will indicate through warning lights that the vehicle be submitted for a service. (PTI)