Hyundai Motor India to raise car prices by up to ₹25,000 across models from January 2025 due to rising costs
Hyundai Motor India said it faces challenges from increased commodity prices and supply chain disruptions, affecting profitability and prompting prior price hikes by competitors.
Hyundai Motor India on December 5 said that it will hike prices of all its cars by up to ₹25,000 from January 2025, due to rising costs impacting profitability, according to a Reuters report.
“At Hyundai Motor India, our endeavor is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers. 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. This price increase will be done across models and the extent of increase will be up to ₹25,000. The price increase will be effective from January 1, 2025 on all MY25 models,” CEO Tarun Garg said in a statement.
About Hyundai Motor India
According to the report, Hyundai Motor is India's second-largest car manufacturer in terms of market share and sells 13 passenger vehicle models, including the SUVs Creta and Venue and the hatchback Grand i10 Nios. This year, it also listed on the Indian bourses, becoming the biggest IPO in the Indian markets.
In November, Hyundai Motor India posted a 16.5 percent decline in its second-quarter profit due to lower domestic sales and Red Sea disruptions, which hurt exports.
More Price Hikes to Come?
It is not alone; other Indian automakers are also fighting higher costs from rising global commodity prices, high import duties on raw materials, and disruptions in supply chains, prompting some to hike prices earlier in 2024. Tata Motors, in fact, raised the prices of its commercial vehicles twice during the year, the report added.
Then, in November German automotive giant BMW’s two-wheeler division, BMW Motorrad, announced a price increase across its entire model range in India. Effective 1 January 2025, prices will rise by up to 2.5 per cent. In a statement, the company attributed the adjustment to escalating input costs and inflationary pressures.
Just a few days back on December 2, Audi India announced a 3 per cent price increase across its lineup, citing rising input and transportation costs, and other automakers are likely to follow suit in the coming weeks. Audi's portfolio includes popular models such as the Audi A4, Q7, e-tron GT, and RS Q8, among others.
(With inputs from Reuters and ANI)
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Business NewsAuto NewsHyundai Motor India to raise car prices by up to ₹25,000 across models from January 2025 due to rising costs
First Published:5 Dec 2024, 01:55 PM IST
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