Hyundai India increases price across all models; cites the increase of raw materials and decreased value of INR as reasons
South Korean auto major Hyundai has announced the price increase for all their models in India. The company is increasing the price of the models ranging between Rs. 3,000 to Rs. 20,000. Therefore all the models, starting from Hyundai Eon to the Santa Fe get pricier. The company cites reasons behind the price hike as the increase in the cost of raw materials and the decrease in the value of the Indian rupee.
Earlier this year, Hyundai hiked the price of the cars citing the reason of the raw material price increase. Later the price was increased for the second time, when new taxes were imposed on the automobile industry in the Union Budget. Now again the increase of price might impact on the sales of the company. Hyundai India is hopeful about retaining the business progress though. The increased price will be implemented across the models from 16th August, 2016.
Not only the Hyundai India, India’s largest auto manufacturer Maruti Suzuki also increased the price of their cars in recent times. The Indo Japanese automaker hiked the prices across the models between Rs. 1,500 to Rs. 5,000 (ex showroom, Delhi).
Not only that, the two best selling model from the company Maruti Suzuki Vitara Brezza and the Baleno premium hatchback got a price hike by Rs. 20,000 and Rs. 10,000 respectively. The company stated the reasons as the forex movements and strategic decision. Now the Hyundai India is also walking the same lane. It is to be seen, whether other auto manufacturers present in the country also increase the price of their products.
Talking about the price hike of Hyundai models, Mr. Rakesh Srivastava, the Senior Vice President, Sales and Marketing has said, the decrease in the value of Indian rupee and the rise in the cost of raw materials have directly impacted the company. So, Hyundai India is being compelled to increase the price.
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