Price hikes seem to be the flavor of the season. After Maruti Suzuki announced a hike in prices earlier this week, Korean automaker Hyundai has followed suit.
This is the third time Hyundai is increasing prices in this year alone. Notably, prices went north in January and March earlier. Like most manufacturers, Hyundai has cited currency devaluation and rising costs as the reason behind the added burden on customers. Commenting on the price hike, Rakesh Srivastava, senior vice president, sales and marketing, Hyundai India, said, “The rupee depreciation and increase in raw materials cost have impacted our overall costs. We have been absorbing most of the costs but now we are compelled to consider the price increase. We will be increasing the prices from August 16, 2016 by Rs 3,000 to Rs 20,000 across models.”
The new prices will be effective from August 16, 2016, and are applicable to every model in the manufacturer's portfolio. Entry-level hatchbacks such as the Hyundai Eon and the i10will see a price rise in the vicinity of Rs 3,000, whereas the carmaker's most expensive offering in the country, the Santa Fe, will be dearer by a full Rs 20,000.
Hyundai will be launching two new products this year, which includes the new Elantra and an automatic variant of the popular Elite i20. We expect the prices of these cars to factor in the added cost as well.
Along with each of its biggest launches over the past three years – the Grand i10, the Elite i20 and the Creta – winning the car of the year awards individually, the Korean automaker has also been a favourite with the masses. We don't think the minor bump up in price will change anything.