Maruti cars turn dearer by Rs 3,000-9,000

Maruti Suzuki, the country's largest automobile maker, has raised prices by Rs 3,000 to Rs 9,000 across products, barring the recently launched S-Cross.

The increase became effective August 11. The increase comes after a gap of nearly two years. When the company hiked prices in January this year, it was on account of an increase in excise duty.

The latest price increase will help the company report a better profit in the current quarter. Maruti reported a 56 per cent jump in net profit for the June quarter at Rs 1,193 crore.

"The price revision was effective from August 11 and communicated to the dealers on the same day. The price revision is on account of changes in dealer margin and a minor calibration in prices," a company spokesperson said.

The second-largest player Hyundai had also raised prices by up to Rs 30,000 on all products except its new sports utility vehicle, Creta, from August 1. Hyundai, however, had attributed the increase to a pressure from rising input costs.

Players in the industry are confident that the market will absorb price increases in the run up to the high festive season demand that begins this month with Onam.

Maruti's April-July domestic sale volume grew 15.3 per cent to 416,099 units. Export volume, however, remained flat at 11,307 units.

Maruti Suzuki India Limited