Maruti Suzuki and General Motors have both announced a price increase on their cars for the third time this fiscal citing erosion of profit margins because of currency fluctuation and rising input costs. The new prices are effective from January 16.

Market leader Maruti raised prices in the 0.3 to 3.4% range, with the highest increase of INR 17,100 seen in the popular diesel variant of the new Swift hatch. On an average, prices went up 2% with the lowest increase seen in the Omni van at INR 2,300.

GM increased prices by 0.75 to 1.75% for its Chevrolet branded models; the Cruze mid size sedan becoming more expensive by INR 15,000, while prices for the Beat petrol hatch are higher by INR 4,000 to INR 7,000 and the fast selling new diesel variant saw an up to INR 10,500 price increase.

The Tavera utility vehicles, currently only sold in a BS III version, saw an up to INR 13,000 price increase, while the Spark is now dearer by INR 3,000. The Aveo, U Va and Optra have not seen price hikes.

While Toyota Kirloskar has already increased model prices by up to 3% from January 1, a Hyundai spokesperson said that it has still not taken a decision on whether to revise prices.

(Sourced from BL)