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All Maruthi models except Alto to cost Rs 7500 more. Sharp rise in input costs is cited the reason for this. Now other manufacturers will follow this trend. Your views?

Asked by Good Citizen, 03 Aug '10 12:44 pm
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Answers (1)


Wonder what made Maruti take this decision, because the major input for production of cars, i.e. steel - their prices have tumbled in the last two months of June and July 2010 and likely to remain flat in coming months without any serious threat of jacking up prices. May be, other input costs like salary increase, a stupendous rise in rubber leading to higher prices (tyre companies had increased prices in June) of rubber and all rubber parts that does constitute a major expenditure forming the price of a car may have forced them to go for this increase.

Surprising for the reason that, Maruti had a 29% jump in sales in July 2010, their best month so far. But their first quarter earnings and profit had taken a big hit but that was mainly due the higher royalty now being paid to Suzuki. I feel, they have done this for the only reason of shoring up their bottom lines because they are aware that an increase of this level will not hit the sales figures to be of any concern.
Answered by Omega, 03 Aug '10 01:19 pm

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