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Hyundai Motor India (HMIL) today (27th December) announced a 20-25 per cent cut in production, starting December 29. At the same time, the company said it would increase prices across models by a minimum of 2 per cent in January 09.
Almost three weeks ago, the company had slashed vehicle prices by up to Rs 44,792 on account of the 4 per cent reduction in the central excise duty. The firm sells seven models currently in India in the price band of Rs 2.67 lakh-Rs 16.97 lakh (ex-showroom Mumbai).
Other companies who have also declared price hikes in January include Japanese car makers Toyota and Honda. Both companies have stated that high cost of import, thanks to the weakening rupee, has forced the upward revision in prices.
On the output reduction, the company said its plant in Sriperumbudur near Chennai will witness a cut in production shifts from three to two as demand has slackened. The company will, however, go ahead with the launch of its latest model, i20, which is also scheduled for December 29.
The company has also downsized its sales target for the financial year by 7.5 per cent to 490,000 units, including exports, as compared to 530,000 units projected earlier.
