Maruti Suzuki holds prices of Alto and S-Presso, easing cost for budget car buyers
Maruti Suzuki has decided to keep the prices of its entry-level Alto and S-Presso unchanged despite rising raw material and other input costs.
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Maruti Suzuki, one of the makers of the country's most popular cars, has taken a decision that will come as a relief to buyers of its entry-level cars. Raw material costs are rising and other input costs are also adding pressure, yet the company has decided to keep the prices of the Alto and the S-Presso where they are.
Demand is picking up again in the market for affordable cars. The decision could bring relief to customers who want to buy a car on a budget.
According to the information available, the Alto's price remains at Rs 3.70 lakh after the tax cut under GST 2.0. The company has not raised the price of this model further. The S-Presso's prices have also not changed for now. The two cars could therefore be a good option for families buying their first car on a small budget. However, the on-road price can vary with the city, the variant and insurance or registration charges.
The decision comes at a time when demand for entry-level cars is showing improvement. Sales in this segment have risen by 47%. The GST changes are believed to have made cars comparatively cheaper, and this is why customers' inclination to buy has picked up again. Low price, usefulness for daily travel and the cost of upkeep are key considerations for buyers in this segment.
Meanwhile, the company is raising prices across the rest of its range. Keeping the Alto and S-Presso prices steady therefore carries particular significance. The decision suggests that, rather than passing the full burden of higher costs on to customers, the company is absorbing part of it. In the entry-level segment, price is the biggest factor in a purchase, so even a small increase can affect customers' decisions.
Overall, by holding prices, Maruti Suzuki has tried to strengthen its grip on the budget car market. If demand continues, the decision could benefit the company's sales. But the company's next pricing policy will depend on how raw material costs and market conditions change in the coming period.
