Fri, 02 Dec 2022 08:26 PM IST
MARUTI Suzuki India is set to increase the prices of its vehicles 'substantially' from next month as it looks to offset the impact of rising input costs and make provisions to update the model range to conform to stricter emission norms that are scheduled to come into effect from April 2023.
The largest passenger vehicle manufacturer in the country said it continues to witness increased cost pressure driven by overall inflation and recent regulatory requirements.
The company has planned the price increase in January 2023, which shall vary across models, the auto major said without disclosing the exact quantum of the increase.
In an interaction with PTI, Maruti Suzuki India Senior Executive Officer Marketing & Sales Shashank Srivastava was quoted telling PTI that commodity prices still remain on the higher side when compared with two years ago.
“Besides there is general inflationary pressure on every input cost whether it is energy or material or manpower cost. Then there is [the] requirement to conform to regulatory requirements [sic],” he said.
The company needs to make models ready for the second phase of BS-VI emission norms that kick in from April next year.
“We will have to start making changes in the product range. Also, the price increase taken earlier was not sufficient to cover the increase in commodity prices,” Srivastava noted.
Vehicles will need to have an on-board self-diagnostic device to monitor the real-time driving emission levels. If a situation arises where the emissions exceed the stipulated parameters, the device will indicate through warning lights that the vehicle needs to be submitted for a service.
The vehicles will also carry programmed fuel injectors, which would control the timing and amount of fuel injected into the petrol engine.
Even the semiconductors used by the vehicle will have to be upgraded to monitor throttle, crankshaft positions, air intake pressure, temperature of the engine and the contents of the emissions from the exhaust (particulate matter, nitrogen oxide, CO2, Sulphur), etc.
Maruti Suzuki had increased vehicle prices by around 1.3 per cent in April this year too. When asked about the quantum of the price increase the company planned to take next month, Srivastava said the company is in the process of finalising it.
“To cover all these factors, the price hike has to be substantial," he noted.
(With inputs from PTI)