Industry

Hyundai to increase vehicle prices from January 2020

Hyundai cars ready for shipment are parked at a port in the southern Indian city of Chennai October 1, 2013. A surprise increase in interest rates and rising car prices in September have tempered hopes for a turnaround in India's struggling autos sector, with some analysts pushing back forecasts for a sustained recovery to next financial year. Car sales in India have fallen nearly 6 percent so far in the current financial year to August, according to the Society of Indian Automobile Manufacturers, as high ownership costs in a slowing economy have prompted consumers to postpone purchases. REUTERS/Babu (INDIA - Tags: BUSINESS TRANSPORT)

Hyundai cars ready for shipment are parked at a port in the southern Indian city of Chennai October 1, 2013. A surprise increase in interest rates and rising car prices in September have tempered hopes for a turnaround in India's struggling autos sector, with some analysts pushing back forecasts for a sustained recovery to next financial year. Car sales in India have fallen nearly 6 percent so far in the current financial year to August, according to the Society of Indian Automobile Manufacturers, as high ownership costs in a slowing economy have prompted consumers to postpone purchases. REUTERS/Babu (INDIA - Tags: BUSINESS TRANSPORT)   | Photo Credit: Reuters

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The increase has been necessitated on account of rise in input and material costs, said the car maker.

Hyundai Motor India on December 10 said it will increase prices of its entire product range from next month to primarily offset impact of rising input costs.

“The extent of price increase may vary for different models and fuel types,” Hyundai Motor India Ltd (HMIL) said in a statement. The company, however, did not share details of model wise price change.

The increase has been necessitated on account of rise in input and material costs, it added. The company is working out on details and would share the details of the model wise price hike later this month.

Maruti Suzuki and Tata Motors have already announced to hike prices from January.

On December 3, Maruti Suzuki said it would hike prices across its vehicle range from January 2020. “...Over the past year, the cost of company's vehicles has been impacted adversely due to increase in various input costs. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2020,” the car maker said in a communique to the stock exchanges.

The very next day, Tata Motors also said it would increase prices of its passenger vehicles from January. “With BSVI products coming in, prices will increase from January,” Tata Motors president (Passenger Vehicles Business Unit) Mayank Pareek said. “We are working on the calculations...normally if any change happens the prices go up by ₹10,000-15,000. Now there are two things happening, one is BSVI and there is also pressure from rise in commodity prices,” Mr. Pareek said.

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Printable version | Jan 26, 2020 9:28:07 PM | https://www.thehindu.com/business/Industry/hyundai-to-increase-vehicle-prices-from-january-2020/article30264939.ece

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