Maruti Suzuki keeps close watch on price movement of commodities

The country's largest carmaker Maruti Suzuki India is keeping a close watch on the price movement of commodities, which had touched an 'unprecedented' high in the second quarter, to fix its vehicle prices in the future as it has not fully passed on the impact to consumers, according to a senior company official. The company is hoping for a softening of commodity prices, which also move cycles, having "sort of reached the peak". "Material cost is an important cost in the overall cost structure for any OEM (original equipment manufacturer). Normally, 70-75 per cent of the total cost of an OEM is material cost. "In the second quarter, our material cost to net sales ratio had gone up to a very high figure of 80.5 per cent. This is unprecedented," Maruti Suzuki India Senior Executive Director (Marketing and Sales) Shashank Srivastava told PTI. When asked if the company will hike prices of its vehicles, especially around the new year as is usually done, he said, "We have to carefully ...

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