New Delhi: Market leader Maruti Suzuki India on Monday said it may consider increasing vehicle prices in the near future due to rising commodity costs, even as demand remains robust in the post-GST rate cut environment.
Partho Banerjee, Senior Executive Officer, Marketing & Sales, said the company is closely monitoring the surge in input costs, particularly precious metals, amid ongoing geopolitical uncertainties.
“On the commodity front, prices are going up. The increase in precious metals is phenomenal, but we are keeping a very close watch. In times to come, we are going to review the price increase,” Banerjee said during post-monthly business update call.
He added that the company is trying to absorb cost pressures internally but may eventually need to pass on some of the increase to customers if costs continue to rise.
Strong demand, record bookings and pending orders
Maruti Suzuki currently has around 1.75 lakh pending orders due to production constraints. In January, the company received bookings of over 2.78 lakh units, marking a 25 per cent year-on-year growth.
“The market is giving us around 9,000 to 10,000 bookings every day,” Banerjee said, highlighting sustained demand, including from first-time car buyers.
To protect customers who have already booked vehicles, the company has introduced a price protection scheme from January. Under this initiative, customers with pending bookings will not face any price increase.
Impact of GST cuts and industry outlook
Last September, following the implementation of GST 2.0, Maruti Suzuki reduced prices of several entry-level models, including S-Presso, Alto K10, Celerio and Wagon-R, with cuts ranging up to ₹1.29 lakh.
On the broader industry outlook, Banerjee said the passenger vehicle industry could return to a CAGR of 6–7 per cent, although rising commodity prices and geopolitical developments could influence growth trends.
He added that GST reforms and the Union Budget 2026–27’s focus on infrastructure capex are expected to support the auto industry.
Sales, exports and new model performance
Maruti Suzuki reported its highest-ever monthly total sales of 2,36,963 units in January. Exports also reached an all-time monthly high of 51,020 units.
The company’s newly launched SUV Victoris crossed cumulative sales of 50,000 units within five months of launch.
On production constraints, Banerjee said the company will have to manage for a few more months until additional capacity becomes available.
Maruti Suzuki’s second plant at Kharkhoda in Haryana is scheduled to be operational by April 2026, followed by the commissioning of the fourth line at its Gujarat facility, together adding around five lakh units of annual capacity.
The company’s electric SUV e Vitara is expected to be launched in the domestic market this month, with dispatches already underway.
