Maruti Suzuki weighs price hike as commodity costs surge, demand stays strong

Market leader Maruti Suzuki India said on Monday it is reviewing a possible price increase for its vehicles as input costs rise, even as demand remains robust following recent GST rate reductions.

Senior Executive Officer (Marketing & Sales) Partho Banerjee said escalating commodity prices—particularly precious metals—are pushing up costs, prompting the company to closely monitor the situation amid ongoing geopolitical uncertainty.

“On the commodity front, prices are going up. In precious metals, the increase is phenomenal,” Banerjee said. “We are keeping a very close watch… but yes, in times to come, we are going to review the price increase.”


Banerjee said Maruti Suzuki is making efforts to absorb higher costs through efficiencies across its supply chain and manufacturing operations, but added that sustained cost pressures may eventually have to be passed on to consumers.

“Our endeavour, being a market leader, has always been to minimise the cost increase to our customers,” he said. “After a certain extent, if we are unable to accommodate the cost increase, we need to pass it on.”

The company did not indicate a timeline for any potential price hike. However, Banerjee said Maruti Suzuki introduced a price protection scheme in January for customers who have booked vehicles but are facing delayed deliveries due to production constraints.

"We were seeing first-time customers, who are coming to the four-wheeler segment, and we need to give them the opportunity to upgrade. Hence, we have given a price protection scheme (for those who have booked their vehicles)... There will be no price increase (for those customers)," Banerjee said.

Maruti Suzuki currently has 1.75 lakh pending orders, reflecting supply constraints. In January alone, the company received 2.78 lakh bookings, translating into 9,000–10,000 orders a day, Banerjee said.

The automaker benefited significantly from last year’s GST 2.0 reforms, under which it slashed prices across entry-level models. In September, prices of the S-Presso were cut by up to Rs 1.29 lakh, Alto K10 by Rs 1.07 lakh, Celerio by Rs 94,100, and WagonR by up to Rs 79,600, among others.

On industry prospects, Banerjee said the passenger vehicle market could return to a 6–7% compound annual growth rate, though rising commodity prices and geopolitical developments warrant caution.

He added that the Union Budget 2026–27, with its emphasis on infrastructure-led capital expenditure, along with GST reforms, is expected to provide a further boost to the auto sector.

Maruti Suzuki reported its highest-ever monthly total sales of 2,36,963 units in January, while exports hit a record 51,020 units for the month. The company’s newly launched SUV VICTORIS crossed 50,000 units in five months.

Addressing supply constraints, Banerjee said the company will need to manage production pressures for a few more months until new capacity comes online. Maruti Suzuki’s second plant at Kharkhoda in Haryana is scheduled to begin operations in April 2026, followed by the commissioning of the fourth line at its Gujarat facility, together adding 5 lakh units of annual capacity.

On electric vehicles, Banerjee said the e VITARA will be launched in the domestic market this month, with dispatches already underway. (With inputs from PTI)