New Delhi, Mar 26: Country's top car maker Maruti Suzuki India Ltd (MSIL) today said high input cost is effecting its margins and it intends to cut costs of production and improve productivity to offset a rise in materials. ''Prices of not only steel, but aluminium, copper are rising and it is hurting car makers,'' Shinzo Nakanishi said adding the company aims to cut costs and improve productivity to offset a rise.
Company CEO (Sales and Marketing) Mayank Parekh said there was an extent to which the company could absorb high input prices and beyond a limit it was not possible. ''Higher input prices are affecting us. Let us see till when we can absorb them,'' Mr Parekh added.
The company today launched the Swift DZire at an introductory price of Rs 4.49 lakh and Rs 5.39 lakh (ex showroom Delhi) for petrol and diesel versions respectively. However, given the prices of steel continue to head north, a price revision of cars may be undertaken.
Mr Nakanishi said the company would export 50,000 cars for fiscal FY08 and that he was hopeful of maintaining at least the same level of overseas sales for the following financial year. He maintained that on the domestic market, FY09 would be a challenging year for the company.