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Informist, Wednesday, Jan. 28, 2026

 

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--Maruti Suzuki: See prices of some raw materials inching upwards 
--CONTEXT: Comments by Maruti Suzuki mgmt in post earnings analyst call 
--Maruti Suzuki: Struggling to meet PV demand in short term 
--Maruti Suzuki: Studying news of S Africa looking to put tariff on India cars 
--Maruti Suzuki: Seen a positive swing in first time buyers in Q3 
--Maruti Suzuki: Don't think price hike immediately after GST cut ethical 
--Maruti Suzuki: Saw an unfavourable forex impact on raw material prices 

 

By Anand JC and Pallavi Singhal

 

MUMBAI/NEW DELHI – Maruti Suzuki India Ltd. Wednesday said it will not be ethical to hike prices of its cars now, especially because the government cut the Goods and Services Tax only recently. "Some manufacturers may be doing it, but we think we should make a decision in favour of the consumer," the company's executive director for corporate affairs told analysts in a post-earnings conference call. 

 

"It is not common that the taxes are reduced by about 5% to 10% on items in a single stroke. Given the magnitude of this measure, it was expected to show some manifestation in terms of market growth," Bharti said. The passenger vehicle industry, which saw sales drop mildly on year in the first half of 2025-26 (Apr-Mar), sprung to life in the final quarter as sales shot up 22% on year.

 

Its peers, including Hyundai Motor India Ltd., MG Motors, Mercedes-Benz India, and BMW, have already announced price hikes earlier this month amid a spike in raw material costs, logistics costs, and currency fluctuations. Weakening of the rupee impacted the raw material costs of Maruti Suzuki in the final quarter, its Chief Financial Officer Arnab Roy said. Additionally, the company has seen prices of select raw materials such as platinum, palladium, rhodium, aluminium, and copper.

 

Maruti Suzuki wants to build on this momentum rather than bring it to a halt by hiking prices. "We always have time ahead of us where we can, if there are cost pressures, we can recover that from the market. But temporarily, we would like to continue with the momentum," Bharti said.

 

The company is struggling to meet the rapid surge in demand for cars. Maruti Suzuki had an order book of 175,000 vehicles as of Dec. 31, even after it registered a record high retail sales of 683,000 units. Even though small car sales surged more than they have in recent years, demand for other segments such as sports utility vehicles, too, remains high. Around 47% of its customers are first-time car buyers, up 6-7% during the December quarter, the company said. 

 

SOUTH AFRICA TARIFF

Maruti Suzuki accounts for 46% of passenger vehicles exported from India. It is on track to export 400,000 cars in FY26, as per its guidance. Maruti Suzuki exported 332,585 cars across nearly 100 countries in FY25. South Africa was by far the biggest destination with 95,597 units sold there.

 

Media reports late Tuesday suggested that South Africa is weighing the imposition of up to 50% tariff on cars imported into the country from India and China. "We will try to understand what exactly is in the mind of the government and we'll understand how it goes," Bharti said, adding that the company is studying the development currently. 

 

"Exports is always a mixed bag. There are always some countries which take prominence or which have some changes happening. So the top few countries always keep seeing changes," Bharti said. "It's a very dynamic scenario," he added. 

 

The company reported its December quarter earnings during market hours. It reported a net profit of INR 37.94 billion on revenues of INR 498.92 billion. Wednesday, its shares closed 2.4% lower on the National Stock Exchange at INR 14,877.  End

 

Edited by Deepshikha Bhardwaj

 

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