Automotive News

The competition between Maruti and Hyundai is just beginning. These two are without a doubt the top manufacturers in small cars in India along with TATA. Maruti had made the first move to start selling cars with CNG with the launch of the new Wagon R. With the rising crude oil prices and subsequent rise in fuel prices this is a tactic which would definitely give them the edge in that market segment.

Hyundai has decided that it will compete in the CNG market with the launch of the CNG Santro. The Hyundai Santro CNG will start selling by next year and will come with a factory fitted CNG setup. This will also be a secondary fuel option almost identical to the Maruti Wagon R.

The Hyundai Santro CNG will be compiled in their Chennai unit.

Maruti and Hyundai both have decided to hike car prices starting from the month of January due to the increase in input costs. Speaking to the company representatives, they felt compelled to do so due to a increase in freight cost and other input costs.

Managing Director of 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.” Hyundai car prices have been raised by close to Rs. 2,500 - 3,500 in all variants.

Maruti have segmented the rise to various amounts depending upon the cost of the car. The Maruti Baleno will now be expensive by over Rs. 12,000 which is a pretty big rise. The new cars like the Zen Estillo and the new WagonR which were introduced at discounted prices will see a rise of about Rs.3,000.

Hyundai Motors will pass on the VAT benifit that they will receive from the Government to the consumers. This is going to be only a small amount but still its being done for some reason. Earlier a tax of 12.6 percent was paid as local sales tax which will be replaced now by 12.5% flat VAT charged to everyone. The 1% turnover tax will also not be levyied on the carmaker.

This percentage price cut will reduce the prices of the Santro XL by Rs. 2,000, the Hyundai Getz GLS by Rs. 3,000. The maximum price cut is obviously with the Sonata which is the highest priced car from Hyundai. Sonata prices will be reduced in Tamil Nadu by Rs. 10,000.