Hyundai has announced an upcoming price hike for its vehicle lineup, scheduled to take effect from January 1, 2024. This decision comes as a response to several contributing factors such as escalating input costs, adverse exchange rates, and a noticeable surge in commodity prices. The automobile manufacturer, known for its diverse range of vehicles including models like Grand i10 Nios and the electric SUV IONIQ5, spanning a price spectrum from Rs 5.84 lakh to Rs 45.95 lakh, conveyed its intention to raise prices without specifying the exact extent of the increase.
Hyundai Motor India Ltd (HMIL) highlighted the driving forces behind this move, citing the relentless increase in input costs, unfavorable exchange rates, and the overall rise in commodity prices. HMIL’s Chief Operating Officer, Tarun Garg, emphasized the company’s persistent effort to absorb cost escalations wherever feasible, aiming to shield customers from undue financial burdens. However, due to the current circumstances, HMIL finds it necessary to implement a minor price adjustment to offset a portion of the mounting input costs.
Despite this imminent price adjustment, HMIL reiterated its commitment to internally manage and minimize any potential future price impacts on its customers. This proactive stance aims to mitigate the impact of market fluctuations on consumers, demonstrating the company’s dedication to maintaining a balance between cost and quality for its valued customers.
This decision by Hyundai aligns with a trend observed across the automotive industry, as several prominent players like Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Honda, and Audi have also disclosed their plans to raise vehicle prices in January. The common rationale shared among these manufacturers revolves around the need to address the prevailing economic challenges, including increased input costs and fluctuating exchange rates, thereby ensuring sustainable operations in a dynamic market landscape.
As a result, Hyundai’s move to adjust prices reflects a strategic response to economic factors affecting the automotive sector, aiming to maintain a sustainable balance between quality, affordability, and market demands while sustaining a commitment to its customer base.