“While the company makes maximum effort to reduce cost and partially offset the increase, it has become imperative to pass on some of the impact through a price increase,” it had said in an earlier statement.
Auto companies have been routinely hiking prices over the last couple of years owing to increasing input costs.
“The price hikes that auto companies have done is a huge jump for buyers in lower-to-middle income brackets,” said Mansi Lall, research analyst at Prabhudas Lilladher.
Besides, rising interest rates and not so bright global economic situation and its impact on India in the days to come are some of the factors which are keeping the industry in a cautious mode.
“Increase in price always has a certain negative impact on sales. But we still do not know how much the prices will go up and what will happen to input cost and foreign exchange. These are uncertainties which will always be there,” Maruti Suzuki India Chairman R C Bhargava told PTI.
He, however, stated that the domestic car industry has revived in the last few months and the semiconductor shortages are also going to abate in 2023.”Putting it all together, our estimate would be that next year would probably be a reasonably good year for the industry. I think we should do at least as well if not better than 2022,” Bhargava said.