Winning Bizness Desk
Mumbai.Maruti Suzuki India has announced a price increase across its entire lineup of vehicles, effective February 1, 2025. The price hike will range from ₹1,500 to ₹32,500, depending on the model. The company cited rising input and operational costs as the primary reason behind the decision, stating that passing on some of the financial burden to customers was unavoidable.
Model-Wise Price Increase: Celerio Sees the Biggest Hike
Among the various models, the Celerio will experience the steepest price hike, with an increase of ₹32,500. Other models, such as the Ciaz and Jimny, will see more moderate increases, starting at ₹1,500. This marks Maruti Suzuki's second price revision within a year, following a 4% price hike implemented across all models in January 2024.
Sales Performance: Record Growth in December 2024
In December 2024, Maruti Suzuki reported a strong sales performance, selling a total of 1,78,248 units, reflecting a 30% year-on-year growth. This figure includes 1,32,523 units sold in the domestic market, 37,419 units exported, and 8,306 units sold to other original equipment manufacturers (OEMs).
Q2 Financial Results: Profit Declines Despite Revenue Growth
Maruti Suzuki recorded a standalone net profit of ₹3,069 crore in the second quarter of the 2024-25 fiscal year (July-September). This marks a 17% decline compared to the ₹3,717 crore profit reported during the same period last year. The company attributed the decline to increased costs, despite achieving stable revenue growth.
For the July-September 2024 quarter, Maruti Suzuki’s operational revenue stood at ₹37,203 crore, compared to ₹37,062 crore in the same quarter of 2023. This represents a modest 0.37% year-on-year increase. Operational revenue includes income generated from the sale of goods and services.
Rising Costs and Market Trends
The company emphasized that the ongoing rise in input and operational costs has put pressure on its margins. While Maruti Suzuki has consistently achieved strong sales growth, the higher costs of raw materials and logistics have forced it to adjust prices. This price hike is expected to impact customers but also reflects the broader industry trend of increasing costs being passed on to consumers. Despite this, Maruti Suzuki continues to perform strongly in the market, maintaining its position as a leading automaker in India.
The price revision is expected to have minimal impact on demand, given the company’s robust sales trajectory and the Indian market’s steady appetite for automobiles. However, prospective buyers may need to act before February 1 to purchase vehicles at the current prices.
