Hyundai hikes prices by up to Rs. 30,000 effective August

India's second largest carmaker Hyundai motor India Ltd on Saturday announced a price increase across all its models barring its recent launch Creta, upto a maximum Rs. 30,000 due to rising cost of raw materials.
By : Hindustan Times
| Updated on: 25 Jul 2015, 03:37 PM
Managing Director and CEO, Hyundai Motors India limited, B S Seo poses during the launch of the Hyundai Creta in New Delhi. Photo: AFP
Managing Director and CEO, Hyundai Motors India limited, B S Seo poses during the launch of the Hyundai Creta in New Delhi. Photo: AFP
Managing Director and CEO, Hyundai Motors India limited, B S Seo poses during the launch of the Hyundai Creta in New Delhi. Photo: AFP
Managing Director and CEO, Hyundai Motors India limited, B S Seo poses during the launch of the Hyundai Creta in New Delhi. Photo: AFP

India's second largest carmaker Hyundai motor India Ltd on Saturday announced a price increase across all its models barring its recent launch Creta, upto a maximum 30,000 due to rising cost of raw materials.

The increased prices would be effective from August 1. The company has not divulged the exact quantum of increase for respective models but it is understood that the maximum would be for its top of the line SUV Santa Fe. Its bestselling models like Grand i10, Elite i20, Eon and Xcent would attract much lower hike.

Similar Cars

Find More Cars
Audi Rs Q8 (HT Auto photo)
Audi Rs Q8
3996 cc | Petrol | Automatic (Torque Converter) | 8 kmpl
₹2.07 - 2.1 Cr**Ex-showroom price
Hyundai Casper (HT Auto photo)
UPCOMING
Hyundai Casper
999 cc | Petrol | Manual
₹4 - 7 Lakhs* *Expected Price
Hyundai Santro (HT Auto photo)
Hyundai Santro
1086 cc | Petrol | Manual | 20 kmpl
₹4.67 - 6.47 Lakhs**Ex-showroom price
Hyundai Grand I10 Nios (HT Auto photo)
Hyundai Grand I10 Nios
1197 cc | Petrol | Manual | 21 kmpl
₹5.19 - 8.52 Lakhs**Ex-showroom price
Hyundai Aura (HT Auto photo)
Hyundai Aura
1197 cc | Petrol | Manual | 21 kmpl
₹5.92 - 9.43 Lakhs**Ex-showroom price
Hyundai I20 (HT Auto photo)
Hyundai I20
1197 cc | Petrol | Manual | 20.35 kmpl
₹6.8 - 11.43 Lakhs**Ex-showroom price

"The price increase has been necessitated by increase of input costs,' said Rakesh Srivastava, senior vice president, marketing and sales. HMIL. 'We have been absorbing most of the costs but now we are constrained to consider the price increase in these challenging market environment."

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

Hyundai's price hike is likely to be followed by other companies as well. At the start of this month, General Motors had increased prices of all its 8 models between 1-2% due to adverse foreign exchange fluctuation. The last time companies had increased prices was in January at the start of the year as has increasingly become the norm.

Analysts however said there was no reason for a price hike at this time of the year and this was just an excuse to create more head room for discounts in the upcoming festive season. According to industry body Society of Indian Automobile Manufacturers (SIAM) prices of steel and aluminium have actually declined by 8-10% and 5% respectively between December 2014 and May 2015. Only rubber and polypropylene (thermoplastic) prices have firmed up by 4.4% and 8.4% respectively during the period.

'There is no justification for the hike,' said an analyst with a leading consultancy firm who did not wish to be identified. 'Steel copper and aluminium prices have been soft and more than offset the higher prices of rubber polypropylene and lead. Sales have been sluggish and this is just to ensure there is more room for discounts during the festive months.'

After a great start to the year, sale of passenger vehicles declined in June for the first time in 8 months. Absolute volumes have remained stagnant from April to June, a worrying trend for the industry.

First Published Date: 25 Jul 2015, 12:17 PM IST
TAGS:
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city