Maruti hikes prices up to Rs 15,000

The New Delhi-based carmaker raised the prices between Rs 1,000 on the Zen Estilo and Wagon R hatchbacks to Rs 15,000 on the diesel variant of its Swift model. A company spokesman confirmed the increase in prices without giving the details.

Prices of steel, one of the main input in cars, have risen both globally and locally, forcing automobile makers such as Maruti and Honda Siel Cars to raise prices. Maruti's price increase comes amid prospects of a slow-down in sales because of rising interest rates.

Reuters adds: Maruti also withdrew the special introductory price on the newly-launched Swift DZire model. A Maruti spokesman, however, declined to comment on the matter.

Shinzo Nakanishi, managing director, Maruti, had said in April that the company was negotiating with steel companies on new contracts and faced a price increase up to 40 per cent.

Maruti had cut the prices of some models in February-end after the government reduced the excise duty on small cars to 12 per cent from 16 per cent.

Top utility-vehicle maker, Mahindra & Mahindra, raised the prices of its vehicles by up to 2.5 per cent last week.