Hyundai mulls price hike due to increased input costs

The country's second largest car maker Hyundai Motor India today said it is mulling to increase prices of its products due to rising input costs.

"There will be something, but I can not say when and how much... We are still evaluating it," Hyundai Motor India Director (Marketing and Sales) Arvind Saxena told PTI when asked if the company will increase the prices of its cars.

Last week, rival and market leader Maruti Suzuki India had raised the prices of its various models, except Alto, by up to Rs 7,500 citing a sharp increase in input costs with immediate effect.

Prices of raw materials such as tyres are increasing gradually due to hardening of natural rubber rates. Steel prices have also put additional pressure on the original equipment manufacturers.

"The (rising) input costs are putting pressure on us... We are discussing internally how to handle the situation," Saxena added.

Due to increased natural rubber prices, tyre producers of the country have raised their product rates by about 10 per cent in this year so far. It was hinted that if the situation is not controlled, then a hike of 25 per cent could happen during this fiscal in different phases.

Apollo Tyres have raised the rates by over 10 per cent and considering another price hike in the near future.