India’s largest carmaker, Maruti Suzuki India Ltd (MSIL), will increase the prices of its passenger vehicles by up to ₹30,000 across its portfolio from August 2026, citing persistent inflationary pressures and a sustained rise in input costs.
The company said it has been absorbing a significant portion of the cost escalation over the past several months through various cost optimisation initiatives. However, with input costs continuing to remain elevated, it has become necessary to pass on part of the additional burden to customers.
The exact increase will vary depending on the model.
Price hike driven by inflationary pressures
Maruti Suzuki said the automotive industry continues to face an adverse cost environment, with higher raw material prices and other inflationary pressures weighing on manufacturing costs.
“While the company has made continuous efforts to mitigate the impact through cost reduction measures, the sustained increase in input costs has made a price revision unavoidable,” the company said in a regulatory filing.
The automaker added that it remains committed to minimising the impact of the price hike on customers while maintaining the quality and value proposition of its products.
Strong sales momentum continues
The announcement comes at a time when Maruti Suzuki continues to maintain its leadership in the Indian passenger vehicle market.
The company reported total sales of 1,92,244 units in June 2026, registering healthy growth over the corresponding month last year. Domestic passenger vehicle sales remained robust, supported by sustained demand for SUVs, compact cars and utility vehicles, while exports also continued to contribute meaningfully to overall volumes.
The company’s broad product portfolio, extensive dealership network and growing export presence have helped it retain its dominant market position despite increasing competition in the passenger vehicle segment.
Capacity expansion gathers pace
Maruti Suzuki is also expanding its manufacturing footprint to meet growing demand.
Earlier this year, the company inaugurated its new manufacturing facility at Kharkhoda in Haryana, marking a significant milestone in its long-term expansion strategy. The new plant, developed with substantial investment, will be scaled up in phases and is expected to become one of the company’s largest production hubs, substantially enhancing its annual manufacturing capacity over the coming years.
The capacity expansion is expected to support Maruti Suzuki’s long-term growth ambitions in both the domestic and export markets as India continues to emerge as a major global automobile manufacturing hub.
Industry faces cost challenges
The latest price revision reflects the broader trend across the Indian automobile industry, where manufacturers have been grappling with rising commodity prices, higher logistics expenses and increasing compliance costs. Several automakers have revised vehicle prices over the past year to partially offset these higher input costs.
For Maruti Suzuki, the latest increase is aimed at balancing profitability while continuing investments in new products, manufacturing capacity and emerging technologies, including hybrid and electric mobility.