Maruti Suzuki joins GM, Hyundai in price hike

The last year in the Indian auto mobile industry's can be marked with a golden words coming from the amazing hike of 30 per cent. The last decade has been remarkable for the domestic auto industry as varied foreign auto companies came to the country and invested in the auto mobile sector. But it looks like this year did not kick start with a positive note as many auto giants have increased the prices on its car models, reasoning it to the price hike of the production and input cost of the raw materials.

Last month, General Motors India, Hyundai Motors India declared the price hike on its car models for 2011. Now recently Maruti Suzuki India, the market king in the small car segment increased the prices by 2.2 per cent though it has excluded Maruti Alto K10 from the increased price bracket. The auto companies are blaming the rising cost of the inputs which is shrinking the company's profit margins.

GM and Hyundai declared the price hike in December, 2010 which was effective from January 1st which might have triggered the Indian auto czars to raise the price stating the same reason. The price will witness a maximum hike of Rs 8,000 in all its car models leaving the newly launched eye catcher Maruti Alto K10. Mr Mayank Pareek, the Managing Executive Officer (Marketing and Sales) at Maruti Suzuki India said that the company has raised the prices from January 17. The company has increased the price ranging from 0.5 per cent to 2.2 per cent on its car models.

Hyundai Motor India Ltd (HMIL) last month announced the hike of 1.5 per cent for January on its selected models such as the popular hatchbacks, Hyundai Santro, Hyundai i10, Hyundai i20, the sedan Hyundai Verna. While the US based auto giant General Motor's Indian arm raised the price from 1 per cent to 1.5 per cent which was effective from the 1st of January, 2011. P Balendran the Vice-President at General Motors India said that the price hike will result in increase in the prices from Rs 2,500 to Rs 15,000 in its car models in various segments.

Tata Motors, the Indian utility maker also raised the prices on the passenger cars and on the commercial vehicles to Rs 30,000. However, the auto company increased the cost on its passenger car models from Rs 3,000 to Rs 15,000 and for commercial vehicles, from Rs 1,500 to Rs 30,000.

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