Automobile manufacturer Maruti Suzuki informed on Thursday that it would be increasing the prices of its vehicles from January 2022. It added this was owing to an increase in various input costs.
According to the company, the price increase would vary as per the model variant.
"Over the past year, the cost of the Company's vehicles continue to be adversely impacted due to an increase in various input costs. Therefore, it has become imperative for the Company to pass on some impact of the above additional costs to customers through a price hike," the company stated in a regulatory filing to the Bombay Stock Exchange.
At the time of publishing, the company's stock was trading 0.71 per cent higher at Rs 7,326.50 on the BSE. On the NSE, the stock was trading 0.66 per cent higher at Rs 7,321.10.
The company had reported on Wednesday that its total vehicle sales in November fell 9.16 per cent on a year-over-year basis to 1,39,184 (approx 1.39 lakh) on account of semiconductor shortage. In October, the company had sold a total of 138, 335 vehicles, 0.6 per cent less than November.
"The shortage of electronic components had a minor impact on the production of vehicles during the month. The shortage primarily affected the production of vehicles sold in the domestic market. The Company took all possible measures to minimise the impact," it added.
In a separate development on Tuesday, Maruti Suzuki had said that total vehicle production in its Gujarat and Haryana manufacturing locations would be around 80 to 85 per cent of normal production. It had flagged similar concerns, late in October, with regards to vehicle production in November.
In Q2, Maruti Suzuki reported a 65.35 per cent decline in profit on a year-over-year basis at Rs 475.30 crore in the September-end quarter. Revenues in the second quarter fell approx 9.1 per cent at Rs 19.297.80 crore compared to the comparable period, last year.
"An estimated 116,000 vehicles could not be produced owing to the electronics component shortage mostly corresponding to the domestic models. The Company had more than 200,000 pending customer orders at the end of the quarter for which the Company is making all efforts to expedite deliveries," the company stated in its quarterly report.