Maruti hikes car prices as input costs rise, BS IV norms kick in

Automobile giant Maruti Suzuki has decided to pass on the some of its increased expenses to customers by increasing the prices of its cars by up to Rs10,000. "Due to sharp increase in the input costs and also introduction of BS IV (emission) norms in some models, Maruti Suzuki India has decided to pass on part of this cost impact to customers," India's largest carmaker said in a statement.

With this price hike, the A-Star hatchback will cost Rs1,000 more, while Maruti 800 and Omni models will get Rs 3,000 costlier. The Gypsy will go up by the maximum of Rs10,000, as will its five-seat multipurpose car Eeco, on which the introductory price will be withdrawn.

The company had stopped sales of the Maruti 800 in 13 cities on 1 April as the new Bharat Stage IV emission norms came into effect. There are reports that the company is thinking of upgrading the engine of the model to comply with the new norms. The 800 was once the company's top-selling model, and is still popular in smaller towns and rural areas.

The company had announced a few months back that it would be forced to hike prices in the wake of rise in prices of steel and other inputs. However, it has held off the price hike so far. Now, with car sales booming despite the withdrawal of some of the government's stimulus packages, it has decided to go ahead with the price hike.