Pressured by rising input costs, especially that of steel, country's largest carmaker Maruti Suzuki said on Thursday it will hike the prices of products in the next few weeks.
"Pressure is coming from steel companies which are asking for a 40 per cent increase in steel prices," Maruti Suzuki India Executive Officer (Marketing and Sales) Mayank Pareek said.
Asked if the company would be hiking the prices of its products, he said, "In our business, pricing is crucial. In the next few weeks, we will do so."
He, however, declined to comment on the quantum of the imminent price hike.
Earlier, the company's sales department wrote to dealers to be prepared for the imminent price hike and exhaust existing stocks before the new prices become effective.
"There has been a continuous increase in the steel and commodity prices in the past few months. As a result our input costs have increased substantially. We have been trying to absorb this increase in the input costs, but now we are forced to pass on a part of this increase to the customers," the company's letter to dealers said.
The company had last increased the prices of its cars between Rs 1,000 and Rs 11,000 (ex-Showroom, Delhi) ranging across most of its models in February 2008.
It, however, reduced prices in its six models following the excise duty reduction announced in the Budget on small cars from 16 per cent to 12 per cent. Maruti 800, Omni, Zen, Wagon R, Swift Diesel and Alto that qualify for the lower excise benefit, saw the price reduction ranging between Rs 6,500 and Rs 18,030.
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