India’s Maruti Suzuki will increase the prices of its vehicles by up to 30,000 rupees ($311.85) from next month, the country’s top carmaker said on Thursday, as inflationary pressures and an adverse cost environment persist.
The Middle East conflict has disrupted global trade routes and energy markets, driving up prices of key inputs and pressing companies to pass on higher costs to customers.
With inflationary pressures now at elevated levels and the adverse cost environment persisting, the company has to pass on a portion of the increased costs to the market, it said in a statement.
The price hike will vary by model as Maruti, a unit of Japan’s Suzuki Motor seeks to offset sustained increases in input costs.
Maruti joins peers Tata Motors Passenger Vehicles, Mahindra & Mahindra and Hyundai Motor India, all of which announced price hikes earlier.
Last month, Maruti warned of potential impact on demand for price-sensitive entry-level cars if petrol prices rise.
Indian state-run suppliers raised petrol and diesel prices by around 4 rupees a litre last week. Although prices are deregulated in India, the government exerts significant influence on prices as the majority shareholder of the key retail companies.