Hyundai to increase prices from INR 2,889 to INR 82,906

Hyundai Motors has announced an increase in the price of all its models with immediate effect, owing to the 2016-17 budget announcements. The price increase will be in the range of INR 2,889 and INR 82,906 for its range of passenger vehicles.

The hike in prices comes a day after the government has announced additional infrastructure cess on all cars and SUVs which are sold in India. This additional  tax comes as a heavy burden to car manufacturers and hence Hyundai will be passing on the same to the customers.

Commenting on the price hike, Mr. Rakesh Srivastava, Sr. Vice President, Sales and Marketing said, “The new levies in Union Budget 2016 have led to price increase across the models ranging from Rs 2,889 to Rs. 82,906. Today’s customers are discerning on net off value offerings. The change in price value equations could alter the overall demand, from with-in the segment to across the segments and fuel types.”

Hyundai Eon, which is the cheapest Hyundai car will see an ex-showroom price increase of INR 2,889. The current on-road price of Eon starts at approximately INR 3.60 lakhs and goes upto Rs 4.90 lakhs for the top-end variant.

Hyundai’s most popular model currently, the Creta will experience a hike of INR 27,192 for its variants which starts approximately at INR 9.0 lakhs (on road) and goes upto INR Rs 15.20 lakhs (on-road).

The premium SUV from Hyundai, the Santa Fe will see the highest increase in prices. The SUV at present has an on-road starting price of approximately INR 29.0 lakhs which goes up to INR 33.5 lakhs. The hike on ex-showroom prices of Santa Fe will be INR 82,906.

It was proposed that Petrol/LPG/CNG driven motor vehicles of length not exceeding 4 metres and engine capacity not exceeding 1200cc will be taxed at 1%. Diesel driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1500cc will have an additional cess of 2.5 percent and infra cess for other higher engine capacity cars and bigger sedan, and SUVs will be 4 percent. What this exactly means is that any car costing above INR 10 lakhs will attract a tax of 5 percent.