Hyundai Motors India stated that it will raise the price of its cars by 2 per cent. The company announced, on Monday, (6th December) that due to hike in the raw materials and production cost, the company is forced to increase the cost of its cars to 2 per cent.
Arvind Saxena, Director, Sales and Marketing, Hyundai Motor India Ltd. said that the input cost is increasing and company was bearing it for a longtime but now when profit margins are squeezing, the company plans to share its cost burden with the customers. By January 2010, the prices of Hyundai vehicles will be increased by 1.5 to 2 per cent.
Hyundai announced its price hike after General Motors declared hike in prices by 2.5 in all its models. General Motors price hike is a result of the cost pressure the company is facing. The new prices will be effective from January 2011. The companies arch rivals Maruti Suzuki is also raising the price of its cars by January.
Hyundai Motors India Ltd., is best known for its technology, comfort and style. The Hyundai has range of cars which starts from the hatchbacks to premium sedans, they are Hyundai Santro, Hyundai i10 and Hyundai i20, Hyundai Accent, Hyundai Verna Transform and Hyundai Sonata Transform and also the newly launched Sports Utility Vehicle Hyundai Santa Fe. The Hyundai car prices start from 2.75 lakhs and the most expensive car is priced at Rs 22.95 lakhs.
Well it has been observed that the auto companies have announced price hike for January by the year end. This seems to be in practice with the auto companies to push the sales in the year end.
Hyundai is enjoying a steady growth in the Indian auto market of 12 per cent. The largest auto exporter, Hyundai, achieved the success because of its cars' savvy looks and state of the art technology.
The company records the tag of second largest auto producers which is proven by the number of sales it is encountering each year. Though, in the month of November 2010, HMIL sold 44,542 units registering a downfall of 12 per cent over November, 2009 sales of 55,241 units, the domestic sales brought relief by accounting sale of 31,540 unit when compared with last year's 28,162 units 2009, sold in November, 2009. Recently, the company also achieved the milestone by rolling out 20th lakh car in the market.
