Maruti Suzuki warns of price hikes as Iran war raises costs

India’s top carmaker, Maruti Suzuki, said ​on Wednesday (April 1, 2026) that it will likely raise prices as ‌the West Asia war has pushed up commodity ​prices, wiping out gains from last ⁠year’s consumption tax cuts.

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.

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“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 (April 1, 2026), Maruti reported a 10% year-on-year rise in domestic sales to dealers during March and a 43% jump in exports.

Shipments to the West Asia, 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 West Asia 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.