Maruti Suzuki India Ltd (MSIL) is not contemplating any price raise, despite a 20-30 per cent surge in raw material prices in recent months. The country's largest car maker, which sells three out of every five compact cars in the domestic market wants to maintain its pricing edge by absorbing the rise in input costs, as rivals prepare to expand sales operations and launch new models.
Maruti's rivals like General Motors and Tata Motors, had earlier signalled that a rise in car prices was on cards. Prices of key raw materials like auto grade steel, rubber and copper have risen sharply over the last eight-nine months, compared to the same period last year. Auto component suppliers are also under pressure. Domestic steel makers have sounded out a hike in prices by three to five per cent in December.
Japanese car maker Toyota Motor Corporation is launching its much-publicised compact car, Etios, in India next January. The car is expected to be slotted in the space where Maruti's successful models like Swift and Ritz are sold. In addition, Ford India and Volkswagen are also expanding dealer network to extend the reach of their recently-launched compact cars, Figo and Polo. Both models enjoy an order backlog of more than three months. Nissan Motor India recently added a diesel variant of its Micra compact car, launched earlier this year. Almost 50 per cent of compact cars sold in India run on diesel engines.
However, Maruti would stick to its plan of launching one model every year, in addition to offering upgrades and face-lifts. The company is also working towards launching its new plant at Manesar to address the waiting period. MSIL is collectively investing more than Rs 3,600 crore for adding an annual capacity of half a million units, which would take its total capacity to 1.7 million units.
| Company Name | CMP |
|---|---|
| Maruti Suzuki | 10904.75 |
| Mahindra & Mahindra | 2906.40 |
| Hyundai Motor India | 1764.75 |
| Mercury Metals | 88.11 |
| Hindustan Motors | 25.10 |
| View more.. | |
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