Hyundai Motor India, the country’s second-largest car manufacturer, has announced an impending increase in the prices of its vehicles, effective from April 1, 2025. The company stated that the price hike will be up to 3% across its model range. This decision comes as the automaker grapples with escalating input costs and the impact of fluctuating exchange rates.
The official announcement from Hyundai India cited a consistent surge in the cost of raw materials like steel, aluminum, and precious metals used in vehicle manufacturing. Furthermore, the volatility in foreign exchange rates has added to the financial pressure on the company, making it necessary to adjust the prices of its offerings.
This price revision will affect the entire portfolio of Hyundai vehicles sold in India, ranging from the entry-level models like the Grand i10 Nios and Aura to popular SUVs such as the Creta and Venue, and premium offerings like the Alcazar and Tucson. While the exact quantum of the price increase will vary depending on the model and variant, customers can expect to pay up to 3% more for their chosen Hyundai car starting next month.
A senior spokesperson for Hyundai India explained the rationale behind this move. “The continuous increase in input costs, coupled with unfavorable exchange rates, has compelled us to consider a price adjustment. We have been absorbing a significant portion of these rising costs for an extended period. However, to ensure the sustainable operations of our business and to continue providing high-quality products to our customers, a partial pass-through of these costs has become inevitable.”
This is not the first instance of car manufacturers in India raising prices in recent times. Several other automakers have also implemented similar hikes citing comparable reasons. The automotive industry has been facing headwinds due to increased raw material prices globally, supply chain disruptions, and the transition to stricter emission norms, all of which contribute to higher manufacturing costs.
For prospective car buyers, this announcement means that purchasing a Hyundai vehicle before the end of March could result in potential savings. Customers who were planning to buy a new car in the coming months might want to expedite their purchase to avoid the price increase. Dealerships across the country are likely to see increased footfall in the remaining days of March as buyers try to capitalize on the current prices.
Industry analysts believe that this price hike from a major player like Hyundai could potentially influence other car manufacturers to follow suit. If a significant portion of the industry increases prices, it could have an impact on overall car sales and consumer sentiment in the automotive market.
Hyundai Motor India has a strong presence in the Indian market with a wide network of dealerships and service centers. The company offers a diverse range of vehicles catering to different segments of the market. Popular models like the Creta and Venue have consistently performed well in the highly competitive SUV segment. The company has also been actively focusing on the electric vehicle (EV) segment with models like the Kona Electric and the recently launched Ioniq 5. It remains to be seen if the price hike will also extend to their EV offerings.
The announcement comes at a time when the Indian automotive market is showing signs of recovery after the pandemic-induced slowdown. Sales figures have been gradually improving, and manufacturers are optimistic about future growth. However, factors like rising inflation and increased vehicle prices could potentially dampen consumer demand.
Hyundai India has assured its customers that despite the price increase, the company remains committed to providing value-for-money products and maintaining high standards of quality and service. They emphasize their focus on customer satisfaction and aim to continue offering competitive products in the Indian market.
The exact model-wise price revision is expected to be communicated to dealerships in the coming days, and updated price lists will be available for customers by the beginning of April. Potential buyers are advised to contact their nearest Hyundai dealership for detailed information on the price changes for specific models they are interested in.
This price hike reflects the ongoing challenges faced by the automotive industry in managing rising costs. While manufacturers strive to absorb some of these increases, eventually, a portion of the burden often gets passed on to the consumers. It remains to be seen how the market will react to this latest round of price adjustments from Hyundai and other automakers in the near future.
