Hyundai Motor India Limited (HMIL), the country’s second-largest carmaker, will increase prices across its model range by up to Rs 25,000, effective from January 1, 2025.
The price increase, according to HMIL, has been necessitated owing to an increase in input costs, adverse exchange rate and increase in logistics costs.
“Our endeavour is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers," said Tarun Garg, full-time director and Chief Operating Officer, HMIL.
"However, with the sustained increase in input cost, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment,” he added. The price increase will be effective on all MY25 models.
Share of HMIL gained sharply when the market opened on Thursday. It closed the session 0.20 per cent higher at Rs 1,876.
At present, Hyundai sells passenger vehicles ranging from hatchback Grand i10 NIOS (starting price: Rs 5.92 lakh) to premium electric vehicle IONIQ 5 (starting price: Rs 46.05 lakh). The Korean brand is all set to launch its first made-in-India EV early next year.
Hyundai’s price hike aligns with the auto industry’s common practice of raising vehicle prices by 1-3 per cent to counter inflationary pressures and other challenges.
Automakers are expected to follow suit, implementing price increases at the start of the new year. However, the extent of the hikes this time is anticipated to be modest, reflecting the ongoing sluggishness in the market.
Additionally, many original equipment manufacturers (OEMs) and dealers have been offering significant discounts over the past few months to clear excess inventory.
So far, three German luxury car manufacturers – Mercedes, BMW and Audi - have announced a price hike from early next year. Audi said that ex-showroom prices will rise up to 3 per cent due to escalating input and transportation costs.
BMW also said it is going for a price hike of up to 3 per cent across its entire model range. As per BMW, this is done to address rising costs and maintain premium quality standards.
Similarly, Mercedes-Benz’s offerings will be expensive by up to 3 per cent depending on the model. The country’s top luxury carmaker attributed their action to rising input costs, inflationary pressures, and increased logistics expenses.