Three car majors to hike prices from Jan.

NEW DELHI, DEC. 8. Hyundai Motor India (HMIL) today said it would hike prices of its cars between 2 and 4 per cent from January.

The exact quantum of the hike is now being worked out, the company said today in a statement here.

HMIL, a fully owned unit of the South Korean automaker Hyundai Motor Company, manufactures the premium small car Santro and the mid-size car Accent. The hike would be spread over all the variants of both the cars, HMIL said.

Terming the hike as inevitable, the HMIL Managing Director, Mr. Y. S. Kim, said weakening of the rupee and increase in input costs had put pressure on the cost of production.

Hyundai India decision follows close on that of Maruti Udyog and Ford India to effect an increase in their car prices from January 1. While Maruti said it would raise car prices by 3-5 per cent, Ford India said prices would be hiked by 1-2 per cent.

Domestic car makers are under pressure to hike prices following depreciation of the rupee, implementation of uniform sales tax and also increase in global steel and fuel prices and other production-related costs.

HMIL had recorded a pre-tax profit of Rs. 67.61 crores over a turnover of Rs. 2,313.79 crores in 1999-2000, its first full year of operations.

Close on the heels of Maruti Udyog's decision to increase car prices, Ford India today said it would hike prices of its mid- size car Ikon between 1 and 3 per cent from January next.

"The prices will be revised upwards from January 1," the company's (vice president-external affairs), Mr. B. S. Rathor, told PTI here.

"Although the quantum of increase has not been decided formally, it will be in the range of one to three per cent and will be spread over all variants of the car," he said.

- PTI

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Section  : Business
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