Hyundai Motor India Limited (HMIL), the country's second largest automobile manufacturer, announced to hike the prices of all models in its current fleet by up to Rs. 5,000, with effect from November 1, 2012. The declaration came on October 29, 2012 and the move may come as a shock to many Indian car enthusiasts who have been planning to invest in Hyundai cars this festive season.
Expressing his views on the company's decision of hiking prices of all models in its Indian product portfolio, Rakesh Srivastava, Vice President (VP), National Sales and Marketing, HMIL, said, “The price increase has been necessitated by a variety of input costs. We have tried to minimize the price increase to cause less inconvenience to our valued customers.”
Regarding the commencement of latest hike, HMIL said, "The price increase would be up to Rs. 5,000 across models and would come into effect from November 1, 2012." The Indian passenger car market is of great importance to the Korean auto major, who has a number of volume pullers in its arsenal and is regarded as the second most popular passenger car maker in the country.
HMIL primary focus has been on the small car (hatchback) segment of the domestic auto market, with several key products, such as Hyundai Eon, i10 and the premium i20. The company has a very diversified sedan fleet in the country as well and its Accent and Verna saloons enjoy great successes in the country. HMIL's executive sedan fleet is star studded too and boasts off visually appealing models like Hyundai Elantra Fluidic and Sonata Fluidic saloon. However, the Sports Utility Vehicle (SUV) Hyundai Santa Fe failed to repeat successes of its smaller cousins due to its pricey image. HMIL retails entry-level Eon hatchback with a base price of Rs. 2.75 lacs, which makes its cheapest offering in the country, while the premium SUV Santa Fe is its most expensive product and comes at a price tag of Rs. 25.38 lacs (all prices in ex-showrooms of New Delhi).
Hyundai Motors joins the list of several other auto makers who have recently hiked the prices of their products in the Indian auto market. For instance, the American auto giant, General Motors increased the prices of its entire fleet by Rs. 8,000 to Rs. 20,000, according to the model and segment. Further, top players like Maruti Suzuki, Nissan Motors, Honda Cars India, Renault and Audi among others have also hiked the retail values of some or all of their product range. Industry experts have pegged rising input costs, fluctuating foreign exchange and INR devaluation as among the major contributors towards such moves by the automotive firms.
