Maruti Suzuki India is contemplating a price hike across its product line-up, with entry-level small cars likely to be at the centre of the move after a period of strategic price moderation. Maruti Suzuki’s small car line-up includes the Alto K10 and the S-Presso, both models consists of 6.2 percent of the brand’s overall sales as of December 2025.
Partho Banerji, Senior Executive Officer (Marketing & Sales) at Maruti Suzuki India, said the company is reviewing the “strategic pricing” adopted for small cars following recent GST reductions, which was aimed at accelerating motorisation in the entry segment and attract more first time buyers. Models such as the Alto, S-Presso and Celerio have seen a sharp pick-up in demand, resulting in pending bookings of more than one-and-a-half months. Banerji further added “We will take a call on pricing whether to revert to pre-GST prices or take a different approach. We are contemplating this and will announce a plan for a price hike soon.”
The company indicated that customers who booked vehicles on or before December 31 will continue to receive existing prices, signaling a calibrated transition aimed at limiting disruption for buyers already in the system.
GST 2.0 Effect
For the first time in decades, taxation on small cars was sharply reset in September last year, with GST on sub-4 metre petrol cars cut from 28% to 18% and the cess removed entirely. This marked the largest reduction in small-car taxes in recent history and a clear break from the long-standing trend of steadily rising levies. Thanks to the updated tax slabs, the S-Presso saw the steepest price cut of up to Rs 1.2 lakh on select variants, bringing its base price down to Rs 3.50 lakh and making it the most affordable car in Maruti’s line-up. The Alto, which had held that position for more than a decade, now starts at Rs 3.70 lakh.
The demand resurgence has also been driven in large part by first-time buyers, whose share in the small-car segment has risen by around five percentage points, according to Maruti Suzuki. In December, Alto K10 sales stood at around 10,800 units, while S-Presso volumes were close to 4,000 units. Demand has been particularly strong in tier-2 and tier-3 cities following the GST changes, underlining the continued relevance of entry-level cars in India even as SUVs gain share nationally.
The pricing review comes against the backdrop of a record year for Maruti Suzuki. The automaker reported its highest-ever wholesale and retail sales in December as well as for calendar year 2025. Dealer inventory levels remain extremely lean at around three days, while pending bookings across the network are estimated at about 1.75 lakh units, highlighting the tight demand-supply balance.
Supply Constraints and Production Recalibration
Banerji said the company has temporarily recalibrated production lines to cater to the surge in small-car demand, even as it moderated output for other segments in December. The process, however, is constrained by component availability, particularly kits that are shipped in and require longer lead times. “We have a line capacity and we recalibrate production based on market demand. In December, we prioritised small cars by reducing production of some other segments,” he said, adding that such adjustments cannot be sustained every month given strong demand and waiting periods across the portfolio.
