Hyundai to Hike Prices In April 2010: Others to Follow

As our government is determined to curb pollution by implementing BS-IV norms in 13 major cities in the country, all the automakers are upgrading their engines to meet the stringent norms.

The price rise was quite expected, however according to Hyundai Motor regional sales manager Kumar Priyesh “The entire hike would not be passed on to the customers”.

Country`s largest car exporter Hyundai Motor India were the first to announce the hike in price offiicially, raising prices of all its models in the first week of April by up to Rs 5,000, a company official said.”Hyundai will increase the prices in the first week of April,” Priyesh said, adding that the shift from BS III to BS IV standards was the main reason for the price rise.

Sandeep Singh, joint managing director, Toyota Kirloskar Motors, said: “Yes, we will also be increasing (our prices) due to (the change to) BS IV and increase in cost of inputs. The hike will be in the range of 2-3 per cent.”

P Balendran, director and vice president, corporate affairs, General Motors, said: “We will be hiking our prices in the range of 1-1.5 per cent from April 1. The hike will be made across the product range, except the newly launched products, Cruze and Beat.”

Major car-makers in the country may hike the price from 1-3% from April 1, the day BS-IV norms will be implemented. The thirteen cities include National Capital Region, Mumbai, Kolkata, Hyderabad, Chennai, Bangalore, Ahmedabad, Surat, Pune, Kanpur and Agra. The rest of the country will be upgraded with BS-III norms.

The price raise will be in the range of Rs 2000 for small cars & up to Rs 70000 for big cars. The increase in raw material cost is also responsible for this price hike. In the recent past the price of Auto grade steel has significantly gone up which comprises of almost 50% of Cars raw material cost.

This is the third time in this calender year, manufacturers are increasing the price, and according to experts this hike will continue because of expected high inflation in coming quarters.

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