Santro, Accent cars to cost more

By Our Special Correspondent

CHENNAI, DEC. 22. Cost pressure has finally forced car-maker Hyundai Motor India Ltd. (HMIL) to increase the prices of its popular Santro as well the mid-sized Accent.

Small car Santro will cost 2.08 per cent more now. The ex- showroom Delhi price of Santro LE is now fixed at Rs. 3.43 lakhs. The Santro LS zipDrive will now have a price tag of Rs. 3.85 lakhs ex-showroom Delhi.

The Accent GLS will now be available at Rs. 6.39 lakhs ex- showroom Delhi. This represents an increase of 2.24 per cent over the existing price. Accent GLX, launched in October last, will be dearer by 2.04 per cent at Rs. 6.99 lakhs.

The Managing Director of the company, Mr. Y. S. Kim, in a release here today, justified the hike. ``We are constrained to increase the price because of mounting cost pressures,'' he said. The company had earlier felt that a four per cent increase in prices was inevitable. However, according to Mr. Kim, HMIL had chosen to ``look at our internal process to try and improve operational efficiencies.'' This had resulted in the company absorbing a part of the cost increase. ``For the moment, we have decided to stay within this nominal hike,'' Mr. Kim said.

Hyundai Motor India, in the meantime, has achieved a 41.62 per cent growth in sales at 85,448 cars during the current calendar year. Domestic sales accounted for 81,625 units and exports 3,823. Sales of Santro cars were placed at 68,006 and Accent cars at 16,842 units.

Commenting on the sales figure, Mr. Kim said, ``A matter of even greater satisfaction for us is that in the domestic market, our retail sales have mirrored our wholesale numbers and inventories at dealership points are typically less than three days on an average.'''

Send this article to Friends by E-Mail

Section  : Business
Previous : Nicholas Piramal buys 40 p.c. stake in Rhone
           Poulenc
Next     : SEBI sets new IPO norms