After Maruti, Hyundai to raise car prices

Hyundai Motors India (HMI), the country's second largest carmaker, today said it will increase prices of all its models on account of the rise in education cess.

Though HMI did not give an indication on the exact quantum of increase, but said it was working on it and a hike could be expected by the middle of this March.

"Due to the one per cent increase in education cess in the Union Budget, Hyundai cars would cost more to the end consumer," H S Lheem, managing director, HMI, said in a statement.

The company would increase the prices after it clears all existing bookings, he said. The company will absorb the additional costs till then.

Market leader Maruti Udyog (MUL) yesterday had announced its decision to hike prices from March 15, while other companies such as Ford were taking stock of the situation to review prices.

MUL had said it would hike prices of its cars on account of additional one per cent education cess.

The company, however, added that as a gesture to its customers, who might have deferred purchases owing to the budget, it had not immediately hiked the price.

Ford India also said it is reviewing the impact of budget on the prices of its products.

"We will be considering an increase in the price of the Fiesta and Ikon that have high local content. We would need to study the impact of customs duty reduction on the price of Endeavour," a Ford India official said.