Maruti Suzuki India Ltd said it would increase the prices of all its cars by up to Rs. 20,000. It said the announcement would come on Wednesday and the hikes would take effect from Thursday.
The company had said in December that it would be compelled to increase the prices in the new year as adverse currency fluctuations had made imported components dearer.
India’s largest car company, Maruti, sells a variety of cars, starting from M800 to imported Kizashi. Maruti is likely to be followed by other car manufacturers which had announced similar intentions last month.
Though it is a common practice at the start of every year, the hike comes at a time when the car industry is staring at a decline in sales for the first time in almost a decade.
"The price hike across all models will be up to Rs. 20,000," said Mayank Pareek, chief operating officer (marketing and sales), MSIL.
"On average, the increase will be around 2.5%."
The current round of hikes will not, however, include the Wagon R.