“On the commodity front, prices are going up. In precious metals, the increase is phenomenal,” Banerjee said. “We are keeping a close eye on it… but yes, in the near future we will review the price increase.”
Banerjee said Maruti Suzuki is making efforts to absorb higher costs through efficiencies in its supply chain and manufacturing operations, but added that the ongoing cost pressures may eventually have to be passed on to consumers.“Our aim as an industry leader has always been to minimize cost increases for our customers,” he said. “If we cannot absorb the cost increase to a certain extent, we have to pass it on.”
The company did not indicate a timeline for a possible price increase. Banerjee, however, said Maruti Suzuki introduced a price protection program in January for customers who have booked vehicles but are facing delayed deliveries due to production constraints.
“We saw customers who are coming to the four-wheeler segment for the first time, and we need to give them an opportunity to upgrade. That’s why we have given a price protection program (for those who have booked their vehicles)…There will be no price increase (for those customers),” Banerjee said. Maruti Suzuki currently has 1.75 lakh outstanding orders, reflecting supply constraints. In January alone, the company received 2.78 million bookings, which translates into 9,000 to 10,000 orders per day, Banerjee said.The automaker benefited significantly from last year’s GST 2.0 reforms, which saw prices slashed for entry-level models. In September, prices of S-Presso, among others, were reduced by up to Rs 1.29 lakh, Alto K10 by Rs 1.07 lakh, Celerio by Rs 94,100 and WagonR by up to Rs 79,600.
On the outlook for the sector, Banerjee said the passenger car market could return to a compound annual growth rate of 6-7%, although rising commodity prices and geopolitical developments warrant caution.
He added that the Union Budget 2026-27, with emphasis on infrastructure-led capital expenditure, along with GST reforms, is expected to give further impetus to the auto sector.
Maruti Suzuki reported its highest ever monthly total sales of 2,36,963 units in January, while exports hit a record 51,020 units this month. The company’s recently launched SUV VICTORIS was produced in 50,000 units in five months.
To address supply constraints, Banerjee said the company will have to manage production pressure for a few more months until new capacity becomes available. Maruti Suzuki’s second plant at Kharkhoda in Haryana is expected to come on stream in April 2026, followed by the commissioning of the fourth line at the Gujarat plant, which together will add an annual capacity of 5 lakh units.
On the EV front, Banerjee said the e VITARA will be launched in the domestic market this month with shipments already underway. (With inputs from PTI)
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