Shares of Maruti Suzuki plunged over 2 percent Thursday morning after the automaker announced a price hike from January 1, 2019. The stocks of the country’s largest carmaker fell by more than 2.4 percent in the early trade today to touch the day’s low at Rs 7,367.20 on BSE. The firm has announced price hike across its range of vehicles due to higher commodity costs and adverse foreign exchange movement.
Company Chairman RC Bhargava told CNBC TV18 that automaker expects to clock double-digit growth in sales due as the election year approaches. However, the demand trend continues to be uncertain for next year, he also said.
Also read: Maruti Suzuki announces price hike from January 2019: Here’s how to get the best price now!
The firm had 4 years of more than 10 percent growth due to new model launches, he added. Since the running year didn’t have any new model launches resulting in slower growth, RC Bhargava further told CNBC TV18.
“It has become imperative for the company to pass on some impact of the…additional cost to customers through a price increase across various models in January 2019,” the company said in a regulatory filing. However, the price rise will vary for different models, the company also informed.
Also read: Share market LIVE updates: Sensex plunges 350 points, Nifty below 10,700; Maruti Suzuki shares down 2.5%
Meanwhile, after opening sharply lower, Sensex and Nifty extended losses as financial heavyweights dragged the indices. The 30-share Sensex plunged about 350 points in the morning trade to 35,528.63, while the broader Nifty 50 was trading below the 10,700-level. Earlier, Sensex and Nifty opened negative on Thursday on weak global cues and after RBI refused to soften stance and continued to hold rates.