Hyundai and Audi Announce Price Hikes Effective January 2025

Hyundai and Audi to Raise Vehicle Prices in January 2025 Amid Rising Costs

Team FS

05/Dec/2024

What's Covered Under the Article

Hyundai announces price hikes of up to ₹25,000 across MY25 models, effective January 1, 2025.
Audi India declares a 3% price increase across its lineup, citing rising costs.
Annual price hikes are becoming standard in the auto sector to counter rising input costs.

Hyundai Motor India Limited (HMIL) has announced an upcoming price increase across its Model Year 2025 (MY25) vehicles, effective January 1, 2025. This adjustment comes in response to rising input, logistics, and transportation costs, coupled with unfavorable exchange rate movements. The price increase, capped at ₹25,000, will apply to the company’s extensive lineup of vehicles, ensuring customers are well-informed ahead of the changes.

Tarun Garg, Whole-time Director and Chief Operating Officer of HMIL, emphasized the company’s dedication to minimizing customer impact despite persistent cost escalations. He stated:
"At Hyundai Motor India Limited, our endeavor is always to absorb rising costs to the extent possible, ensuring minimal impact on our customers. However, with the sustained increase in input costs, it has now become imperative to pass on a part of this cost escalation through a minor price adjustment."

Meanwhile, Audi India recently announced a 3% price hike across its vehicle lineup, effective from January 2025, citing similar reasons. Popular models such as the Audi A4, Q7, e-tron GT, and RS Q8 will see increased pricing. Audi India Head, Balbir Singh Dhillon, commented on the adjustment, emphasizing the need for sustainable growth for both the brand and its dealer partners:
"This correction is essential for Audi India and our dealer partners to ensure sustainable growth. We remain committed to minimizing the impact of the price hike on our valued customers."

Price Hikes: A Growing Trend in the Auto Industry

Annual price adjustments have become a common practice in the automotive industry as companies navigate cost escalations from the prior year. Factors such as logistics challenges, rising material costs, and exchange rate volatility have consistently impacted the cost structure for manufacturers. Brands like Hyundai and Audi aim to maintain operational sustainability while balancing market demands.

Impact on Consumers

For consumers, these price hikes mean that those planning to purchase a vehicle may want to finalize their deals before the year-end to avoid the increased costs. The adjustments also reflect the broader market dynamics and manufacturers’ efforts to stay competitive amid rising expenses.

Future Outlook for the Auto Sector

With Hyundai and Audi leading the way in announcing price increases, it is anticipated that other automakers may follow suit in the coming weeks. These adjustments not only cater to maintaining profitability but also allow manufacturers to invest in new technologies and sustainability efforts.

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