Hyundai Motors India plans on hiking the price of all its models sold in the country. Recently, Tata Motors hiked the price throughout its product range. Mercedes-Benz India has also confirmed that they would be increasing the price for their models very soon.
The Korean-based automobile manufacturer plans on increasing the price of its models from Rs. 30,000 to Rs. 80,000. It is most likely that the entire range from Eon to Santa Fe will be affected by the price hike. The increase in price is expected to affect overall sales as well in the Indian market.
The major reason for the price hike by Hyundai and several other manufacturers is the 'infrastructure cess' that is levied by the Government. In the recent 2016 Union Budget, various taxes have been enforced on automobiles, which vary on different levels.
The weakening of the Indian Rupee in global economies is also another issue. The cost of acquiring raw materials has also increased, which helps in justifying the price hike by Hyundai. Upcoming models from Hyundai Motors will also witness an increase in pricing even before their launch.
At the recently concluded, 2016 Auto Expo, Hyundai showcased several of its new and upcoming products. The Tuscon SUV is most likely to launch in the Indian market. With the increase in luxury tax, the Tuscon by Hyundai could be priced higher than ever expected.