Jan. 16, BENGALURU (Reuters) - The nation's largest automaker, Maruti Suzuki India (MRTI.NS), raised the pricing of its models by 0.45% on Tuesday, a significant decrease from the increase it made in January of last year, suggesting that demand for its vehicles is slowing down.

In late 2023, Maruti and its competitors announced that they would be raising prices starting in January because of rising commodity prices.

The company, which is primarily owned by Suzuki Motor (7269.T) in Japan, has suffered with slow sales in the small car market as the income levels of its regular customers haven't kept up with the rising costs of consumer goods and automobiles.

Analysts expect passenger vehicle sales to grow around mid-single digits this fiscal and slow down further in the next, following a surge in sales in the last fiscal driven by pent-up demand due to COVID.

The maker of Swift hatchback had increased prices averaging 1.1% across its entire car lineup in January last year, more than double the latest hike.

Automakers in India increase prices of their vehicles in January every year after attempting to woo customers with seasonal discounts.

In December 2023, Maruti raised discounts on its entry-level models by 40–45% in light of the year's end and the lack of demand for such cars.

Nevertheless, Maruti's limitation of wholesales contributed to a 29% decrease in sales of its small cars, such as the Alto and Celerio, in December over the same month the previous year.

Compared to the previous fiscal year's 26% growth, Maruti's overall sales from April to December increased by 8.5%.