Hyundai Motors India has decided to increase prices across all products between 1 per cent and 1.5 per cent from February 1.
The decision comes a day after Maruti Udyog Ltd (MUL) announced that it would hike prices by up to Rs 12,000 from next month.
Hyundai’s price revision would be applicable to all models, including its flagship Santro, premium hatchback Getz, sedan Sonata and the newly launched Verna,
a company spokesperson said. Earlier, Hyundai had said the price rise will include both its diesel and petrol models.
Car companies are under input cost pressure due to steep hike in steel and aluminium prices. “We are transferring a little burden of the rising cost to the
customer, while absorbing most of the inputs cost,” said MUL managing director Jagdish Khattar.
Company sources said while Maruti will not hike the price of the Swift Diesel launched last week, the price of the Zen Estilo may go up marginally.
Other companies which have increased prices this year by 1-2 per cent include Honda Siel Cars, Ford India Motors, General Motors and Mahindra & Mahindra.
Hyundai also said its vendors from Korea will infuse another $785 million in the next two years in its Indian operations.
Hyundai Motor India managing director H.S. Lheem said the new investment will be made by 24 new vendors and 17 tier II suppliers from Korea.
The company’s existing 17 vendors have already pumped in $262 million in Hyundai’s ramp-up operations. These vendors will invest another $356 million while
the new vendors will put in $254 million and the tier II suppliers another $75 million.
The total tally at the end of two years would be just under $1 billion or around Rs 4,262 crore. The ramp-up and investment by vendors would create an
additional employment of 19,000 people, said Lheem.