Hyundai Motor India has announced a price hike of up to ₹ 30,000 across its model range effective from January 2019. The decision comes due to the impact of rising input costs and is a part of cyclical price revision which happens at the start of every year and has become a norm in the auto industry. Recently, some of the major carmakers such as Maruti Suzuki, Tata Motors, Ford, Honda, Renault, Nissan, Toyota and BMW have also made price hike announcements citing similar reasons.
Recently India has witnessed a rise in the exchange rates of commodities like steel, aluminium and other metals which has increased the cost burden on automakers and they have to pass it onto the customers in order to retain margins. Other macro-economic factors such as the rise in petrol prices and increase in interest rates have also added pressure. The rise in fuel prices has added to the transportation cost of vehicles to dealerships while the increase in interest rates has made corporate loans more expensive.