Date:02/02/2007 URL: http://www.thehindubusinessline.com/2007/02/02/stories/2007020202542300.htm

Maruti, Hyundai raise prices

Our Bureau

Hikes range from Rs 2,000 to Rs 12,000

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New Delhi Feb.1 Carmakers Maruti Udyog and Hyundai on Thursday announced a price hike on their vehicles in order to ease pressure from rising input costs.

Maruti has raised prices of the Baleno and Gypsy King by Rs 12,000. Prices of the new WagonR and Zen Estilo, both of which were launched at introductory prices, have been increased by Rs 3,500. The increase in Maruti 800, Omni, Alto, Swift (Petrol)Vxi and Esteem has been Rs 2,000.

"Over the recent past, there have been significant increases in input costs of the company as also the operational costs of its dealers. The company has decided to pass on a part of this burden to its customers. A major portion of this increase will go towards the dealers' margins to help them provide better services to the customers," the company said in a statement.

Meanwhile, Hyundai Motor India Ltd announced an increase in the prices of its largest selling car, Santro, across all its variants. The increase on the Santro ranges from 0.7 to 1.3 per cent across all variants. Prices of all other models from the stable of the Korean car manufacturer, however, remain the same. The retail prices of Santro have been raised in the range of Rs 2,500-3,500 across all the variants.

Announcing the hike in prices of Santro, Mr H.S. Lheem, Managing Director, Hyundai Motor India Ltd, said, "There has been an increase in the input and freight cost for car manufacturers. We have tried to absorb as much of the cost as we can."

The new prices are applicable with immediate effect.