Monday, February 12, 2024
By Kamal Swami
Maruti Suzuki Considering Price Hike Amid Red Sea Crisis
Maruti Suzuki, one of India's leading automotive manufacturers, is hinting at introducing another round of price hikes due to the ongoing Red Sea crisis. According to Rahul Bharti, Maruti Suzuki India's Executive Officer (Corporate Affairs), the company might raise prices due to logistical challenges arising from the Red Sea crisis.
The conflict between Israel and Hamas has increased tensions in the Red Sea region, affecting the supply chain of the automotive industry. Bharti acknowledged that Maruti Suzuki is encountering logistical hurdles due to this crisis, which could result in increased costs associated with risks or rerouting of vessels. However, he emphasized that any cost increase is not expected to be significant.
Despite the challenges, Maruti Suzuki remains optimistic about its overseas shipments. Bharti assured that while there may be changes in dispatch lead times and uncertainties in the arrivals of shipments, the company does not anticipate a major impact on its export operations. Maruti Suzuki is a key player in India's passenger vehicle export market, aiming to export 7.5 lakh units by the end of the decade.
In addition to addressing the current supply chain issues, Maruti Suzuki is preparing to enter the electric vehicle (EV) market. Bharti announced plans to commence production of the company's first battery electric vehicle in 2024. Derived from the eVX concept showcased at various auto expos, the upcoming mid-sized SUV promises a range of around 550 kilometres. Maruti Suzuki intends to cater to both the domestic market and export to developed markets like Japan and Europe with its EV offerings.
This move endorses Maruti Suzuki's commitment to innovation and adaptation amidst evolving industry challenges and trends.