Hyundai Motor India Ltd. (HMIL), the country's largest passenger car exporter and second largest car manufacturer announced that it will be increasing the prices across all its models in the month of Jan 2015.
The south Korean carmaker, has taken this step due to higher cost of materials needed. The cost of raw materials has gone up, which will leave a significant amount of damage in the company's profit.
Commenting on the price hike, Mr. Rakesh Srivastava, Sr. Vice President, Sales and Marketing said, "In these adverse market conditions, the price increase is necessitated on account of increase in input costs, high cost of imports due to higher rupee depreciation and high cost of sales."
"We have been absorbing most of the costs but are now constrained to consider price increase across all models in the range of INR. 5,000 to INR. 25,000 which will be effective from Jan 2015".
Other companies like Maruti Suzuki, Honda and Toyota are working on the price hike as well. Mahindra, India largest utility vehicle manufacturer has also hiked prices for a few models.
Manufacturers are increasing prices after a long time, when poor sales and a hurt market prevented them from increasing prices for cars. Carmakers are requesting the government to extend the Excise duty cut, which was introduced in February.