Hyundai, Tata, Honda hike prices, Maruti may follow suit
The automobile industry has begun raising car prices to marginally pass on the impact of increasing costs, reports Deepak Joshi.india Updated: Jan 05, 2007 20:09 IST
The automobile industry has begun raising car prices to marginally pass on the impact of increasing costs.
While Honda Siel Cars India (HSCI) and Hyundai Motor India announced an increase in prices of some of their models on Friday, industry leader Maruti Udyog Ltd is expected to follow suit.
Company officials said they were taking stock of the quantum of increase in prices and a decision could be taken by the middle of the month.
HSCI, a leading manufacturer of premium cars in India, has announced a price revision of two of its models, Honda City and Honda Civic, effective from Saturday. Variants of Honda City and Civic will be dearer by Rs 5,200 to Rs 12,800.
The increase, necessitated by increasing input costs and other inflationary pressures, is in the range of one to 1.2 per cent on the current price. This is the first price increase by HSCI in two years, a company release said.
An increase in the price of Honda Accord will be announced shortly as a new model is expected later next week. "Over the past two years, there has been a significant increase in the cost of raw materials such as steel, aluminium, plastics etc. Apart from these, logistics costs too have gone up, impacting bottom lines," the company said.
Hyundai Motor India has revised the introductory price of its latest mid-size offering, the Hyundai Verna. The price increase on the Hyundai Verna will be with immediate effect and includes both diesel and petrol models.
The price increase varies from Rs 3,500 for its base petrol model to Rs 10,000 for its state-of-the-art diesel model. The company said a price revision in other models will be done later.
Tata Motors has also increased by up to Rs 15,000 the prices of its popular sports utility vehicle Safari and multi-utility vehicle Sumo.
Depending on the variants, the Safari would be dearer by Rs 10,000-15,000, while the average hike in cost of Sumo across variants is Rs 5,000, dealers said.
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First Published: Jan 05, 2007 20:09 IST