Maruti Stock Rebounds After Price Hike Announcement, Up Over 5% in Six Months

16 Jan 2024 , 01:11 PM

During Tuesday’s intraday trading session, Maruti Suzuki’s shares increased by around 1.5% following the announcement made by the nation’s largest manufacturer that it will be raising the cost of its cars with immediate effect.

The company estimates that the change will result in a weighted average increase across models of about 0.45%.

‘A weighted average increase across models is predicted to be approximately 0.45%. The business stated in a stock exchange filing that ‘this indicative figure is calculated using Ex Showroom prices of models in Delhi and will come into effect from January 16, 2024.’

Shares of the automaker have gained 2.6% during the past five trading sessions, but have declined over 1% in the prior one month. Maruti Suzuki shares have increased by more than 5.4% during the last six months.

The price rise is in keeping with the company’s prior announcement from November 27, 2023, stating that it intends to raise the prices of its cars on January 24 due to increased cost pressure brought on by rising commodity costs and general inflation.

‘The Company may have to pass on some increase to the market, even though it makes every effort to reduce costs and offset the increase,’ Maruti Suzuki stated.

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