In its regulatory filing made by Maruti Suzuki to NSE and BSE, the company has said that prices of its vehicles will be raised by a maximum of 4%. The actual price increase will differ according to the model. Rationale behind the price increase, Maruti has put it down to increased input costs and operating expenses.
Maruti also describes that the company always tries to keep costs to a minimum and lower the overall burden on its customers. Yet, because of increasing input costs, part of the added cost has to be transferred to end consumers.
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Maruti Suzuki's recent price increase is on line as the Indian automobile industry has been battling supply side constraints. Major amongst them is inflation in raw materials.
Last month, Maruti Suzuki had raised prices of cars by as much as 4%.
Again the prices were hiked in February between Rs 1,500 and Rs 32,500.
In all these price increases, the major cause is the rise in cost of primary raw materials like steel, aluminium and electronic parts. Carmakers are also seeing rising costs linked to inflationary patterns, energy costs and logistics.
No Major Impact on Car Sales
Despite several price increases, it is doubtful that there will be any significant effect on Maruti sales. Other OEMs have also raised prices in 2025 and can come out with further price increases later in the year.
Maruti vehicles remain affordable even after undergoing several price increases. In February 2025, Maruti had posted a YoY increase of 0.32%, with sales at 1,60,791 units. Market share was at 42.24%.
| No | Maruti Model | Feb-25 | Feb-24 | Diff | Growth % YoY | % Share Feb 25 |
|---|---|---|---|---|---|---|
| 1 | Fronx | 21,461 | 14,168 | 7,293 | 51.48 | 13.35 |
| 2 | WagonR | 19,879 | 19,412 | 467 | 2.41 | 12.36 |
| 3 | Swift | 16,269 | 13,165 | 3,104 | 23.58 | 10.12 |
| 4 | Baleno | 15,480 | 17,517 | -2,037 | -11.63 | 9.63 |
| 5 | Brezza | 15,392 | 15,765 | -373 | -2.37 | 9.57 |
| 6 | Ertiga | 14,868 | 15,519 | -651 | -4.19 | 9.25 |
| 7 | Dzire | 14,694 | 15,837 | -1,143 | -7.22 | 9.14 |
| 8 | EECO | 11,493 | 12,147 | -654 | -5.38 | 7.15 |
| 9 | G Vitara | 10,669 | 11,002 | -333 | -3.03 | 6.64 |
| 10 | Alto | 8,541 | 11,723 | -3,182 | -27.14 | 5.31 |
| 11 | Celerio | 4,226 | 3,586 | 640 | 17.85 | 2.63 |
| 12 | Ignis | 2,394 | 2,110 | 284 | 13.46 | 1.49 |
| 13 | XL6 | 1,878 | 4,093 | -2,215 | -54.12 | 1.17 |
| 14 | S-Presso | 1,685 | 3,059 | -1,374 | -44.92 | 1.05 |
| 15 | Ciaz | 1,097 | 481 | 616 | 128.07 | 0.68 |
| 16 | Jimny | 385 | 322 | 63 | 19.57 | 0.24 |
| 17 | Invicto | 380 | 366 | 14 | 3.83 | 0.24 |
| - | Total | 1,60,791 | 1,60,272 | 519 | 0.32 | 100.00 |
High Selling Models of Maruti Suzuki
A majority of sales at Maruti are through its hatchbacks and SUVs. Maruti also leads the entry-level MPV and van segment. Top performers in February 2025 were Fronx, WagonR, Swift, Baleno, Brezza, Ertiga, Dzire, Eeco, Grand Vitara and Alto. Other models like Celerio, Ignis, S-Presso and Jimny have comparatively lower sales.
Focus on the EV Segment
In the future, Maruti will be increasing attention in the EV space. This is a space that has massive potential that can be leveraged by Maruti through its manufacturing capability and extensive sales network.
Maruti eVitara has already been launched and plans are afoot to launch 3 more EVs by 2030. These will be aimed at domestic and international markets. Options include electric variants of the Fronx and Ertiga. Maruti can also launch a mid-size electric SUV to compete with the likes of Mahindra XEV 9e and Tata Harrier EV.
Conclusion
Maruti Suzuki’s decision to raise car prices in April 2025 follows a trend of consistent price hikes due to increasing input costs and operational expenses. Despite these hikes, Maruti remains a dominant player in the Indian automobile market, with strong sales figures and a significant market share. The company continues to lead in hatchbacks, SUVs, and MPVs while also focusing on expanding its presence in the EV segment. With future electric variants and a well-established brand image, Maruti Suzuki stands to weather the challenges of the market while still leading the market.
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