Shares of the country's largest car maker - Maruti Susuki - rose as much as 4.5 per cent to hit an intraday high of Rs 7,211.90 a day after it undertook price hikes for its vehicles. Maruti Suzuki hiked car prices for fourth time this year, the company had undertaken first price hike of the year in January and then again increased car prices twice in April. 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.
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.
"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.
As of 11:09 am, Maruti Suzuki shares traded 4.2 per cent higher at Rs 7,190, outperforming the Sensex which was up 0.7 per cent.