Close on the heels of passenger car market leader Maruti Suzuki India Ltd (MSIL) jacking up the prices of its models, its competitors like Hyundai Motor India Ltd (HMIL), Mahindra and Mahindra, Tata Motors, GM India have followed suit. The reason cited by all the companies is one i.e. rising input costs.
Hyundai Motor India Limited, on 20th January'09, has announced that it will go for a price hike of 1 to 1.5 per cent across all models ranging from the Santro to the Sonata with effect from February 1. The maximum hike will be up to Rs 9,000. When asked specific-price hikes per model, company officials declined comment saying that the model-wise increase would only be clear by next month when the hike is effective. HMIL sells models, including hatchbacks Santro, i10, i20 and sedans Accent, Verna and Sonata Transform. HMIL has said that it is also expecting an increase in product prices around March, when it introduces the new Bharat Stage- IV compliant petrol and diesel engines across all its models.
According to HMIL director (Sales and Marketing) Arvind Saxena: "The hike in car prises was necessitated due to the rising input costs, especially that of commodities like steel."
General Motors India (GMI) vice-president P. Balendran had announced an increase in prices of the company's models by two to three per cent from January first week to offset rising input costs.
Likewise, Tata Motors has raised the price ranging from Rs. 5,000-8,000 on Indica and Indigo models. Utility vehicle maker Mahindra and Mahindra has also raised the prices of its Sport Utility Vehicle Scorpio between Rs 6,400 and Rs 9,300. While its Utility Vehicle Xylo has become costlier by Rs 4,600, Bolero sees Rs 4,800 hike. The price rise on Tata Motors and Mahindra and Mahindra automobiles will be applicable on new 2010 models.
"Primary reason for hike, which is across all our vehicles, is the rise in prices of the inputs required to make vehicles," said Arun Malhotra, senior VP, Automotive Sector, Mahindra and Mahindra told Economic Times.
Ironically, Honda Siel is taking a detour. Even though the appreciating yen has resulted in a significant drop in most of its models, the company's dealers are doling out huge discounts for its super-premium hatchback-Jazz.It must be remembered that the Jazz has been a non starter as fas sales are concerned primarily for its high priced label.
Hyundai Motor India Limited, on 20th January'09, has announced that it will go for a price hike of 1 to 1.5 per cent across all models ranging from the Santro to the Sonata with effect from February 1. The maximum hike will be up to Rs 9,000. When asked specific-price hikes per model, company officials declined comment saying that the model-wise increase would only be clear by next month when the hike is effective. HMIL sells models, including hatchbacks Santro, i10, i20 and sedans Accent, Verna and Sonata Transform. HMIL has said that it is also expecting an increase in product prices around March, when it introduces the new Bharat Stage- IV compliant petrol and diesel engines across all its models.
According to HMIL director (Sales and Marketing) Arvind Saxena: "The hike in car prises was necessitated due to the rising input costs, especially that of commodities like steel."
General Motors India (GMI) vice-president P. Balendran had announced an increase in prices of the company's models by two to three per cent from January first week to offset rising input costs.
Likewise, Tata Motors has raised the price ranging from Rs. 5,000-8,000 on Indica and Indigo models. Utility vehicle maker Mahindra and Mahindra has also raised the prices of its Sport Utility Vehicle Scorpio between Rs 6,400 and Rs 9,300. While its Utility Vehicle Xylo has become costlier by Rs 4,600, Bolero sees Rs 4,800 hike. The price rise on Tata Motors and Mahindra and Mahindra automobiles will be applicable on new 2010 models.
"Primary reason for hike, which is across all our vehicles, is the rise in prices of the inputs required to make vehicles," said Arun Malhotra, senior VP, Automotive Sector, Mahindra and Mahindra told Economic Times.
Ironically, Honda Siel is taking a detour. Even though the appreciating yen has resulted in a significant drop in most of its models, the company's dealers are doling out huge discounts for its super-premium hatchback-Jazz.It must be remembered that the Jazz has been a non starter as fas sales are concerned primarily for its high priced label.
Media reports claim that Honda dealers are said to be offering discounts of up to Rs 40,000 on the car, along with low interest rates (less than 6 per cent) on loans. According to available figures, Honda Siel produced more than 1,000 units of the Jazz in December 2009, while less than 300 units of the car were sold during that month. Now, in a bid to push sales.
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