* Citigroup maintains its 'buy' rating on Maruti Suzuki
and raises its target price to 1,681 rupees from 1,654rupees.* Maruti Suzuki is seeing signs of improving demand in thefestival season, with "healthy" volume pick-ups according to aCitigroup research note attributing the information to itsrecent conversations with the auto maker's management.* Citigroup says Maruti Suzuki and competitors have raisedprices by around 1-2 percent "because companies sense thatcustomers are returning to showrooms," according to the reportdated on Monday.* The bank warns FX and labour remains areas of concern forMaruti Suzuki, which suffered violent clashes between workersand management at its plant in Manesar in July.* "Manesar labor issues have been resolved for now, but we thinklabor is a contentious aspect not just for MSIL but themanufacturing sector in aggregate," Citi writes.* Maruti shares up 0.8 percent at 1,397.05 rupees.