Three weeks after slashing prices across car models following the excise duty cut, auto company Hyundai Motor India Limited (HMIL) has decided to increase prices by at least 2 per cent. The company has also announced a 20-25 per cent cut in production, starting from December 29. HMIL Managing Director H. S. Lheem said that a cut in production was necessary because of the decline in demand, which is not expected to pick up till the second half of 2009.
Toyota and Honda too will be increasing prices January onwards owing to the weakening of the rupee which has forced a price-hike. According to industry experts, demand is expected to remain low in the first half of 2009. Hyundai Motor, which was so far thought to have tided over the auto industry slowdown because of the popularity of its models the Santro and the i10, is now finally in its grip.
