The Hindu : Business : Maruti hikes prices

Online edition of India's National Newspaper
Thursday, Jan 06, 2005

Business

Business

Maruti hikes prices

By Our Special Correspondent

NEW DELHI, JAN. 5. Maruti Udyog Ltd. today announced hike in prices of all models, ranging from Rs. 2,000 to Rs. 3,000, barring the entry-level car Maruti 800.

Attributing the hike to rising input costs, the company indicated that the increase in Maruti 800 price would be announced shortly.

According to a company statement, prices of the compact car Alto Lxi, Baleno Vxi, Esteem Di, Esteem Vxi, multi-purpose vehicle Versa Dx2, compact car WagonR Vxi, Zen Di and Zen Vxi will go up by Rs. 2,000. The utility vehicle Gypsy King HT and Omni E van will cost Rs. 3,000 more. Only last month, the MUL Managing Director, Jagdish Khattar, said the prices of Maruti models would go up by a maximum 2 per cent as input costs, especially spiralling steel prices, had been putting pressure on margins.

He had said the proposed emission norms, which would come into effect this year, were also factored in while taking a decision on the price increase.

Hyundai Motor India had raised prices on its flagship model Santro in December citing similar reasons.

Car-makers such as Tata Motors, General Motors India and Skoda Auto also said they would increase prices due to rise in input costs and to meet the new emission standards.

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