Maruti Suzuki India, the country’s leading automobile manufacturer, has announced its third price hike of the year, set to take effect in April 2025. The company attributes the decision to rising input costs and operational expenses, making it necessary to pass on some of the burden to customers. The price increase will be up to 4% and will vary depending on the model.

Reasons Behind the Price Hike

Maruti Suzuki India stated in an exchange filing that despite continuous efforts to optimize costs and minimize the impact on customers, the company is compelled to raise prices due to increasing input and operational expenses. This follows two earlier price revisions in January and February 2025, indicating persistent cost pressures in the industry.

Previous Price Hikes and Financial Performance

The company had already raised vehicle prices twice earlier this year, on January 1 and February 1. Despite these increases, Maruti Suzuki has continued to show strong financial performance. In the October-December quarter of FY24, the company recorded a 16% increase in net profit, reaching ₹3,727 crore, compared to ₹3,206.8 crore in the same quarter last year. On a standalone basis, the net profit rose 13% year-on-year to ₹3,525 crore, up from ₹3,130 crore.

Suzuki Motor Corporation’s Mid-Term Strategy

The announcement comes amid Suzuki Motor Corporation’s revised mid-term business plan for 2025-30, which acknowledges shifting market dynamics in India, including declining market share and the rising influence of electric vehicles (EVs). India remains Suzuki’s most crucial market, and the company aims to ramp up annual production to 4 million units while striving to reclaim a 50% market share.

Maruti Suzuki’s Export Strategy

Maruti Suzuki has been actively expanding its export footprint. Currently, the company exports 3 lakh vehicles annually, but by the end of the decade, it is targeting exports of 7.5-8 lakh units per year, leveraging India as a global export hub.

Conclusion

With increasing costs and changing market dynamics, Maruti Suzuki’s latest price hike reflects broader industry trends. While customers may face higher prices, the company remains committed to expanding its production, strengthening its market position, and driving global exports.