Maruti Suzuki India Ltd, the country’s top car maker, raised prices of all its models on Tuesday, sending its shares up as much as 11 per cent, as investors rallied behind the company after months of falling sales appeared to have levelled in December. The company, which lost $500 million in production due to labour strikes that shut down its factories for weeks last summer, has been hit the hardest by a car sales slowdown, caused by high interest rates and rising fuel costs.
Sales of small cars have stalled as the increased cost of credit and ownership deter potential buyers. Maruti Suzuki’s sales fell 53 per cent in October as production returned to full strength, but slid only seven per cent last month. The company raised prices of all its vehicles by 0.3-3.4 per cent due to adverse foreign exchange movements and a rise in commodity prices.