Maruti cars get costlier by up to Rs 20,000

Maruti Suzuki has announced a price hike of up to Rs 20,000 for its entire model range. This decision has been taken to compensate for the impact of foreign exchange movement on the manufacturing of cars. India's largest car manufacturer has posted strong sales figures in July and this price hike is unlikely to have an adverse effect on its sales. The manufacturer sold 1,37,116 units in July 2016, growing 12.7 percent over the same period of last fiscal.

The hike is applicable on all models brought out by the manufacturer. Small cars like the Alto and the WagonR face a hike of up to Rs 5,000, while new entrants such as the Vitara Brezza and the Baleno face a price increase of up to 20,000 and 10,000, respectively. These revised rates have come into effect from August 1, 2016. The statement declaring the hike read: "This price revision is based on factors like segment wise demand, forex movements and strategic objectives of the company."

This hike in prices also accounts for the hike in the manufacturing cost of cars. The last six months have witnessed a rise in steel prices by up to 36 per ent, and rubber by more than 20 percent. We expect other carmakers to also announce a price hike for their models soon.

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