Maruti Suzuki announces price increase from January 2022 – To vary for different models
With parts procurement being a key concern for businesses, costs are key to the success of a product. In recent months, supply chain disruptions have further stressed input costs. Through 2021, cost calculations had an adverse impact owing to increase in various input costs.
Maruti Car Price Hike Jan 2022
Maruti Suzuki India has now announced that a price hike is planned in January 2022 to pass on some impact of the above additional costs. Price increase will vary for different models. Maruti Arena cars include Alto, WagonR, Celerio, Swift, Dzire, S-Presso, Ertiga, Brezza, EECO and their lineup of commercial cars under the Tour brand. Maruti Nexa cars include Ignis, Baleno, Ciaz, S-Cross and XL6.
When it comes to price hikes, manufacturers make multiple such announcements in a given year. This is especially true at the start of each calendar year. With new model year vehicles on the table, price hike announcements for January each year are a given. MSIl announced price revisions in March, July, and September of 2021.
Maruti Dec 2021 production output
As far as production is concerned, following reduced production output in November, MSIL expects production output to be reduced even in December 2021. In a statement earlier this week, the manufacturer said vehicle production at both plants could be 80-85 per cent of normal output. This is largely owing to the ongoing global semiconductor shortage.
Currently with manufacturing reduced, delivery is optimised. Total vehicle production in November 2021 is reported at 1,45,560 units, about 5k lower than Nov 20. Wholesales for the month is reported at 1,39,184 units.
Though manufacturing is being currently adjusted according to supply chain limitations, Maruti’s per month business by volume is larger than life. Even now when the industry is plagued with an unpredictable shortage.
MSIL UV product strategy
While Maruti balances the cost conundrum as per market situation, MSIL has offered an insight into its shortterm product strategy. While the Jimny has been much awaited since launch of the latest model, utility vehicles is where the larger focus lays. And this time around, MSIL isn’t just talking about smaller variants. The focus is on mid range UVs.
This will help the brand cater to customers who need to move to the next UV. With MSIL having a product gap in such segments, plugging the gap will help bring in buyers. Apart fro petrol engines, MSIL is a strong advocate of CNG vehicles, and hybrids. The company would be keen on these fuel variations and alternatives even in the bigger range of UVs to be launched. The wide-ranging UV segment benefits from positive growth forecasts.