Hyundai Motor India considers price hike due to increased input costs

Hyundai Motor India, India’s second largest car maker, said on Wednesday that it is considering to increase prices of its products because of the constantly increasing input costs. When Arvind Saxena, Hyundai Motor India Director (Marketing and Sales), was asked whether the company will raise the prices of cars, he said that there will be some hike but it cannot be said that when and how much, as they are still evaluating it.

Last week, Hyundai Motor India’s rival and market leader,  Maruti Suzuki India had increased the prices of its various models except for  Alto. These prices were increased by up to Rs 7,500 referring to a keen increase in input costs. The prices of raw materials, for example – tyres, are increasing and are gradually stabilizing because of natural rubber rates.  Also the prices of steel have put an additional pressure on the original equipment manufacturers.

Saxena also commented that the rising input costs are putting pressure on the company. They are mulling internally about how to handle the situation. Because of the rise in prices of natural rubber, the tyre producers of the country have also raised their product rates by around 10 per cent in this year. It was indicated that if the situation is not controlled, then there is a possibility of hike of 25 per cent during this fiscal in different phases. A reputed tyre company, Apollo Tyres, has increased the rates by around 10 per cent and is considering another price hike in the near future.