In all probability, Maruti is likely to increase prices on all its models available in India. The new prices are likely to be introduced in the first week of May.

The price rise is imminent due to rising input costs. Many car manufacturers have voiced their concern over the steep increase in prices of steel, aluminum and other products. According to industry sources, Maruti Suzuki India has written to all its dealers to be ready for price hike. They have also asked the retailers to exhaust the cars in the existing price range.

“The raising cost of steel and commodity prices in the last six month has driven the car manufactures to go for a price hike. Maruti has been trying to absorb the price rise for the past few months, but the company is now forced to resort to price rise, to offset the decreasing margins of the company” according to the company’s statement.

Currently, the company is in the process of working out rise in costs for its various models. “There is going to be a substantial rise in cost. The new prices will be introduced from first week of May” the statement said.

Maruti had last increased the prices on all its models in February 2008. However, when the budget provided sops for small cars in form of cut in excise duties by 4 percent. The company promptly reduced prices of six of it models between Rs 6,500 to Rs 18,030. The price reduction was witnessed in M800, Omni, Zen, Wagon R, Swift Diesel and Alto.

As input costs have risen by 25–30 percent in the past six months, the hike in prices of the cars could be substantial that is one of the highest ever hikes witnessed by the auto industry, opine industry experts.