Maruti Suzuki shares zoom after auto giant announces price hikes citing cost pressure
The news of Maruti Suzuki's decision to raise prices followed similar announcements from homegrown rival Tata Motors and German luxury carmaker Audi as rising input costs eat into the margins for the entire auto space.
Maruti Suzuki India shares were in high demand on Tuesday, as investors returned to trade after a long weekend, after the country's largest carmaker announced a hike in the prices of its cars. The stock of Maruti Suzuki India—the country's largest carmaker—gained by as much as Rs 38.8, or 0.4 per cent, to Rs 10,556.9 apiece in early deals on BSE.
On Monday, Maruti Suzuki said it planned to increase the prices across its cars in January 2024 citing "increased cost pressure driven by overall inflation and increased commodity prices".
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"While the Company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market," Maruti Suzuki said.
The auto major also said that the price hikes would vary across models.
The Maruti Suzuki stock came within Rs 290 of a record high of Rs 10,846 scaled in October after staging a strong financial performance for the fiscal second quarter.
The news of Maruti Suzuki's decision to raise its prices followed similar announcements from homegrown rival Tata Motors and German luxury carmaker Audi as auto manufacturers struggle to project their margins against rising input costs, owing to elevated commodity rates.
Dalal Street returned to trade on Tuesday after a long weekend owing to the Guru Nanak Jayanti holiday on November 27.
With inputs from agencies