Hyundai Hikes Price By Up To 3% To Offset Rising Input Costs

Hyundai Motor India Ltd., announced on Wednesday that it has hiked prices up to 3% which will be effective in April 2025, owing to rising input costs, increased commodity prices and higher operational expenses.

"The quantum of price increase will vary basis the variants and models," the carmaker said in a notification to the exchanges.

“We strive to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with the sustained increase in operational expenses, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment," said Tarun Garg, whole-time director and chief operating officer, said.

"The price increase will be effective in April 2025. We remain committed to making consistent internal efforts to minimise any future impact on our valued customers," he said.

Automotive manufacturers are facing higher input costs as raw material, logistics, and production expenses continue to rise. The increase in raw material prices is driven by global supply chain disruptions and growing demand, according to global ratings agency S&P Global.

The possibility of new tariffs under US President Donald Trump’s administration has added uncertainty, which could further increase cost pressures in the industry.

Earlier on Wednesday, Kia India Pvt. announced a price hike of its vehicles by 3% effective from April 1. This comes after Tata Motors Ltd., Maruti Suzuki India Ltd. has effected its third price hike in three months amid moderating sales in the world's third largest car market.

While Tata Motors Ltd. hiked prices of its commercial vehicles by 2%, Maruti Suzuki's price increase of up to 4% may vary depending on the model.

Shares of Hyundai Motor India closed 2.22% higher to Rs 1,615.30 apiece, compared to the 0.32% advance at the benchmark NSE Nifty 50. It has fallen 11.23% in the last 12 months.