Automobile major Maruti Suzuki India’s total sales in August rose to 1,30,699 from 1,24,624 units sold during the corresponding month of 2020. Accordingly, total sales in the month include domestic sales of 1,05,775 units, off-take to other original equipment manufacturers (OEM) of 4,305 units and exports of 20,619 units.
“Sales volume of the company in August 2021 was affected due to electronic components shortage. The company took all possible measures to limit the adverse impact," the company said in a statement.
“While the sales volume in August 2021 was affected due to electronic components’ shortage, the sales volume in August 2020 was impacted due to Covid-19 related disruptions."
The company blamed rising commodity cost for another price hike from September. Earlier in the calendar year 2021, the automobile major had increased prices in January, April, and July only for the hatchback Swift and all CNG variants.
“Rising commodity prices, especially those of steel, copper, rhodium and palladium amongst others have left us with no choice but to raise prices across models," Maruti Suzuki India’s Executive Director, Marketing and Sales, Shashank Srivastava said.
“On an average, the material cost accounts for 70 per cent of our overall cost structure." According to Srivastava, the company tried not to raise prices to revive demand by cost-cutting and other measures.
“But the continuously rising material cost has left us with no options. The quantum of increase on average will be around 1.4 per cent depending on the model."
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“Currently, commodity prices have started to soften up a bit, the industry believes that the material cost will plateau out on these levels and soften more in Q3FY22 and Q4FY22."
The company had earlier raised prices for different car models in July for only the hatchback Swift and all CNG variants. The increase in ex-showroom prices (Delhi) at that time was up to Rs 15,000.
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