The country's largest car maker - Maruti Suzuki - on Monday announced that it will undertake another price hike for its vehicles as the cost has been adversely impacted due to increase in various input costs. This is the fourth price hike Maruti Suzuki has undertaken so far this year. The Gurugram-based company had undertaken first price hike of the year in January and then again increased car prices twice in April.
"Over the past year the cost of the Company's vehicles continue to be adversely impacted due to increase in various input costs. Hence, it has become imperative for the Company to pass on some impact of the above additional cost to customers through a price rise," Maruti Suzuki said in a stock exchange filing.
The company did not mention the quantum of price hike but said that the increase will wary for different models and it is planned in the second quarter of the current financial year.
Car makers across the country are struggling with rising metal cost and shortage of semiconductors in the market, analysts said.
Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.
The usage of semiconductors in the auto industry has gone up globally in recent times with new models coming with more and more electronic features such as Bluetooth connectivity and driver assist, navigation and hybrid electric systems.
Following the price hike development, Maruti Suzuki shares traded 1.12 per cent lower at Rs 6,881, underperforming the Sensex which was down 0.4 per cent.