Latest Car News in India

Tuesday, November 15, 2011

By Pranjal Gera

Maruti Diesel cars to cost up to Rs 10,000 more from now onwards

Maruti Suzuki India (MSI) has announced the hike in its diesel range of cars starting from Rs 2000 and going up to Rs 10,000 per unit. The news has come at the time when the auto market is battling the slow growth rate due to increased interest rates and mounting fuel charges.

As per the spokesperson from the company, Maruti has decided to raise Rs 2000 on the diesel variant of its successful hatchback Ritz and Rs 10,000 on the other available models.

The prime reason for the painful decision was the soaring raw material prices like iron, steel, rubber, etc. This has curbed the net profit of the automobile companies in the country and the statement was expected to come if not today, than tomorrow.

India’s largest car maker’s decision to raise its diesel car prices would definitely hamper its sales and would be a blow to the middle class buyers of the country where every penny counts.

MSI seemed helpless in the recent strikes at Manesar facility and this could a reason for the price hike to compensate for the loss occurred. The top company will certainly take some weeks to get back on the driving track. The tremendous response that company got at the launching of its new Swift few months back with over one lakh bookings, had brought smiles on the manufacturer’s face but the stand-offs had paralyzed them and has thrown a strong challenge on Maruti of recovering the loss.

Maruti manufactures some of the most famous and adorable cars at different plants located across the country. In the small car segment, the company produces popular cars like Maruti 800, Alto, Alto K10, A-Star, Wagon R, Ritz and Swift. The company has 54.2 per cent of its shares owned by the Suzuki Motor Corp.

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