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Korean car maker Hyundai has increased prices of its vehicles by up to Rs 82,906 to pass on the infrastructure cess imposed by the Union Budget. The price hike is effective March 1.
Hyundai will raise price of its entry level Eon by Rs 2,889 while price of premium SUV Santa Fe has gone up by Rs 82,906.
Rakesh Srivastava, senior Vice President (sales and marketing) at Hyundai said the change in price value equations could alter the overall demand from within the segment to across the segment and fuel types.
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On Thursday, Maruti Suzuki, the country's largest car maker said it will raise prices on its vehicles by up to Rs 34,494 to pass on the impact of infrastructure cess.
Following the infrastructure cess on automobiles in Union, ex-showroom prices of Maruti models would go up in the range of Rs 1,441 to Rs 34,494 across the range, the company said in a statement.
As Smart Hybrid models (Ciaz SHVS and Ertiga SHVS) are exempt from the Infrastructure Cess, there is no change in the prices of these models.
More companies are likely to announce the price hike following the imposition of cess. The industry is apprehensive that the price increase will moderate growth in sales of passenger vehicles.
