The largest car makers of India, Maruti Suzuki, has raised the prices of its cars by as much as Rs 15,000 to to accomodate the rising input costs.
The New updation of the prices is between Rs 1,000 on the Zen Estilo and Wagon R to Rs 15,000 on the diesel & Petrol variant of its Swift model. Maruti's price increase comes at the time when industry is expecting a slow-down in car sales because of rising interest rates.
Prices of steel which is the main input in cars, have risen both in India and rest of the word is forcing automobile makers to raise prices. Maruti and Honda Cars are among the first one to show this impact in global rise in in steel prices.
Along with other car makers in India, Maruti had cut the prices of some models in February after the government reduced the excise duty on small cars to 12 per cent from 16 per cent.
A reaction from the customer on the price hike is still to come. This increase in price may soon be followed by other car makers in India.