India’s second largest carmaker Hyundai motor India Ltd on Saturday announced that it will hike prices of all its models sold in India by up to Rs 30,00 effective from August 1,2015 due to rising cost of raw materials.
Hyundai management said reason for a price hike at this time of the year and this was just an excuse to create more head room for discounts in the upcoming festive season.Curently Hyundai has ten car models across segments, including the Eon, i10, Grand i10, Elite i20, Active i20, Xcent, Verna, Elantra, Santa Fe and Creta.
Rakesh Srivastava, senior vice president, sales and marketing, Hyundai Motor India Ltd said,“The hike has been necessitated by increase of input costs.”HMIL. “We have been absorbing most of the costs but now we are constrained to consider the price increase in these challenging market environment.”
“There is no justification for the hike,” said an analyst with a leading consultancy firm who did not wish to be identified. “Steel copper and aluminum prices have been soft and more than offset the higher prices of rubber polypropylene and lead. Sales have been sluggish and this is just to ensure there is more room for discounts during the festive months.”
After a great start to the year, sale of passenger vehicles declined in June for the first time in 8 months. Absolute volumes have remained stagnant from April to June, a worrying trend for the industry.