Maruti Suzuki India (MRTI.NS), the nation’s leading carmaker, announced on Monday a price hike of up to 4% across its models, effective April 2025, citing escalating raw material and operational costs.

The increase, varying by model, mirrors a 4% hike implemented in January 2025, following a December 2024 announcement, and follows a February adjustment where prices rose between Rs 1,500 and Rs 32,500 for select models.

The company, commanding over 40% of India’s passenger vehicle market, attributed the decision to persistent economic pressures. Indian automakers, including Maruti Suzuki, are grappling with surging global commodity prices, high import duties on raw materials like steel and aluminum, and ongoing supply chain disruptions—challenges intensified since the pandemic and geopolitical tensions.

These factors have squeezed profit margins, prompting periodic price revisions to offset costs.

Maruti Suzuki, a subsidiary of Japan’s Suzuki Motor Corporation, sold over 1.7 million vehicles in India last fiscal year, with popular models like the Swift, Dzire, and Ertiga driving demand. However, rising input costs threaten affordability, a key factor in its dominance of the budget-conscious market. The latest hike could impact sales amid competition from rivals like Tata Motors and Hyundai, who may follow suit.

Industry analysts expect other automakers to announce similar increases as inflationary pressures persist. For Maruti Suzuki, balancing cost recovery with maintaining its market edge will be critical as it navigates these turbulent economic conditions into 2025.