Maruti, Hyundai plan to hike prices next month

Passenger car makers Maruti Udyog and Hyundai Motor India are contemplating an increase in prices of some of their models from the beginning of the next month.

Hyundai is planning to raise the price of its C segment offering Accent by Rs 7,000-8,000. Maruti has yet to decide the models and quantum of the increase.

Hyundai president B V R Subbu said that an increase in the price of its premium hatchback Getz is also in the pipeline, although the quantum of the increase has not been decided.

A Tata Motors spokesperson refused to comment on the issue.

A Ford India spokesperson said that an internal discussion on a possible price change was on, but no decision has been taken yet. General Motors could not be reached for comments.

A Maruti spokesperson said, "The quantum of increase and the models for which the price would be increased has not been decided, but in principle the company has decided to increase price of our products effective from October 1."

Citing increased freight rates due to high diesel prices as the main reason for price hike, the spokesperson said the company has to pass on some of it to customers. Growth in the C segment has also given a leeway for manufacturers to consider a price hike.

While the passenger car market as a whole grew by only five per cent (between April and August), the C segment, or A3 segment as Siam classifies it, recorded a growth of around 13 per cent in the first five months of this fiscal. Domestic sales in this segment was around 73,000 units during this period, against 65,000 units in the same period last year.

The recent diesel price increase has resulted in about 4-5 per cent rise in the truck freight rates across the major trunk routes in the country.