Hyundai to hike prices

Hyundai Motor India plans to jack up prices of its passenger vehicles by around 2 per cent. The company, which is the largest exporter of passenger cars, will hike prices in the coming months.

The price hike decision has come about following the steep rise in component prices. The car maker sources 25 per cent of its steel from India and the rest from South Korea and Japan. Components such as specialized steel and tyres have seen steep rise in prices over the past few quarters necessitating an imminent price hike.

The company has been facing rough weather following the global melt down and it has had to put nearly 25 per cent of its export orders on hold. As if to make matters worse, Hyundai which had been hoping for a mega US foray with put off the lauch due to homologation issues. However, it is now keen on markets such as Australia and New Zealand. Export orders have been set aside following dealers in South Africa, Colombia and Iceland urging for a hold on shipments.

Along with the Australian and New Zealand markets, the company is now weighing options on tapping the Asia Pacific region to meet export targets. The Philippines is one market the car maker wants to make a major presence with its models.

Hyundai latest model in India is the i10 Kappa. Prices would go up on that too.

Hyundai considered the i10 for US, but a feasibility study found that the product was not suitable for the US market and needed a lot more modifications. Company officials said it has been decided not to pursue it further. It is now keeping its strategy ready for the future when the new premium hatchback i20 debuts. It is expected that the company will start exporting the i20 towards the middle of this month .