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Maruti Suzuki reviewing possible price increase for small cars
Maruti Suzuki is reviewing GST 2.0-era small car price cuts and will soon decide whether to continue strategic pricing or revert to GST-only rates.
Maruti Suzuki India is reviewing whether it should roll back the aggressive price cuts introduced on its small cars last year, with a decision expected shortly. The move could see prices revert to levels reflecting only the lower GST rates, rather than the deeper reductions currently in place.
Pricing cuts introduced after GST 2.0
Following the implementation of GST 2.0 in September last year, Maruti Suzuki India had gone beyond the 8.5 per cent tax benefit to reduce prices across its entry-level and compact portfolio. The cuts were substantial: the S-Presso saw reductions of up to ₹1.30 lakh, the Alto K10 up to ₹1.08 lakh, the Celerio by about ₹94,100, and the WagonR by as much as ₹79,600.
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According to Partho Banerjee, Senior Executive Officer for Marketing and Sales, the pricing strategy was aimed at improving motorisation levels in the small car segment. Responding to questions on a potential price increase, Banerjee said the company is evaluating whether to continue with the current “strategic pricing” or move back to prices aligned only with the GST reduction.
(Also Read: Maruti Suzuki Victoris hits 70,000 bookings; Brezza remains strong with 23,000 retail sales in Dec 2025)
Pending bookings complicate the decision
A major factor influencing the decision is Maruti Suzuki’s existing order book. The company currently has pending bookings stretching beyond one-and-a-half months in the mini segment, even after volumes in the category doubled in the most recent month. Banerjee noted that the company is considering whether customers who have already booked vehicles should continue to be billed at prices applicable until December 31.
With Maruti Suzuki’s plants currently shut for annual maintenance, the company is weighing the possibility of extending the current prices for another 15 to 20 days to cover pending deliveries. A formal announcement is expected soon.
