Quote on Maruti Suzuki`s price hike By Vinod Nair, Geojit Financial Services
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Below is quote on Maruti Suzuki's price hike By Vinod Nair, Head of Research at Geojit Financial Services
"During H1FY22, MSL’s margin came below the estimate largely due to supply constraints and high input cost. Amidst price rises in commodities like steel, Aluminium and precious metals in the last one year, the company tried to absorb most of it. Therefore, it becomes imperative for the company to pass on some impact to customers by way of car price increase, effective by January 2022. Additionally, the growth in the SUV segment will enhance MSL’s intention to launch 4 new SUVs at 10 lac range by next year to give more options for the existing customers to upgrade and tough competition to its rivals. We expect the demand to pick up gradually by Q4 due to easing commodity costs and semiconductor shortages"
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