India's Maruti may raise car prices in a few weeks
According to the official India's top car maker, Maruti Suzuki India Ltd, is considering raising prices of vehicles because of high steel prices.autos Updated: Apr 24, 2008 17:48 IST
India's top car maker, Maruti Suzuki India Ltd, is considering raising prices of vehicles because of high steel prices, a company official said on Thursday.
"Steel prices are rising and ideally, we would pass it on to customers," Mayank Pareek, executive officer of sales and marketing, said at a news conference.
"In a few weeks we will take a decision on how much."
Maruti had cut prices on some models in end-February after the government reduced excise duty on small cars to 12 per cent from 16 per cent.
Managing Director S Nakanishi said on Thursday the company was negotiating with steel companies on new contracts, for which it faced up to a 40 per cent increase in prices.
Maruti Suzuki, a unit of Japan's Suzuki Motor Corp, on Thursday reported a surprising 34 per cent fall in quarterly net profit as a large depreciation charge offset higher sales.