Maruti Suzuki to raise prices for some car models to mitigate the impact of rising costs, the world's one of the largest automakers by market value. Recently, Mahindra and Mahindra Ltd also increased the prices of its vehicles by 1.9%. The move of Maruti Suzuki came thus after. The new rates should come into effect from Monday. The company is increasing the price of select models owing to an increase in various input costs.
Maruti Suzuki did not specify how much the price increase would be on individual models, nor did it mention which models would be affected by the price increase. Maruti Suzuki was already under pressure from costs and weak demand when the pandemic struck last March. Since then, carmakers have resumed their operations and seen demand return but have warned of demand uncertainties ahead. Last January, Maruti raised the prices of some car models by as much as 4.7%.
Last month, Skoda had announced that it will increase prices across its entire product range. German auto major Volkswagen had also increased prices of its hatchback Polo and mid-sized sedan Vento. Other automobile manufacturers, including Nissan, Renault, Honda Cars, Ford, Isuzu, and Hero MotoCorp, have also announced plans to hike prices due to increased input costs.
Cars cost more in Nepal because of the 225% customs tax applied to all the vehicles imported to Nepal. A car, for e.g. Maruti Swift which costs 5 - 7 lakhs in India would cost more than 20 lakhs in Nepal. However our government is never going to waive it off because it's one of their major income source.