Maruti Suzuki Warns of Price Hikes Amid Gulf War Costs

The Iran war has driven up the prices of everything from oil and gas to key metals used ​in manufacturing vehicles.

The carmaker, majority-owned by Japan's Suzuki Motor, said ​it has not faced any supply disruptions, but acknowledged potential disruptions ⁠in the future.

"We will be taking a call, but unfortunately ​the commodity prices are going very high, we need to pass it ​on, so we will come back very soon on that," Partho Banerjee, Maruti's sales chief, told reporters during a monthly sales call.

The price hike could hit a ​demand upswing for Maruti's small cars, following India's sweeping tax cuts ​in September that drew price-sensitive customers back to dealerships.

The automaker's domestic sales dropped ‌5.8% ⁠between April and September, but jumped 12% between October and March, with demand for small cars outpacing supply and wait times for deliveries stretching to a month.

On Wednesday, Maruti reported a 10% year-on-year rise in ​domestic sales to ​dealers during March ⁠and a 43% jump in exports.

Shipments to the Middle East, which account for 12.5% of Maruti's annual ​export volume, are expected to be delayed, Rahul Bharti, ​senior ⁠executive officer for corporate affairs, said.

Meanwhile, Hyundai Motor India, reported a 10% drop in its overseas shipments in March. The Middle East contributes 40% ⁠of ​the firm's total exports, making it the ​Indian carmaker most exposed to the region.

Hyundai Motor India posted a 6% rise in domestic sales.