Hyundai Motor India Ltd will increase the prices of its flagship model Santro next month due to rising input costs made by an appreciating rupee.
"The cost increase in steel prices due to the rupee appreciation range between 2.5 per cent to 4 per cent. Maybe from May (effect the price hike)," Hyundai Motor India president B V R Subbu told reporters in Bangalore on Saturday night at the launch of Hyundai's new luxury sedan Elantra.
He said prices of Accent have already been increased recently taking into account the rupee appreciation, which the company has pegged at Rs 44 to one US dollar.
Hyundai, Subbu said, would be completing its plant expansion by July to manufacture 250,000 units of cars, from the existing 150,000 cars.
"We are aiming at a production of 210,000 units, of which 72,000 cars are for the export market as compared to last year's (2003-04) production of 172,000 units including 42,000 units which were exported," he said.
Subbu said Hyundai will produce 12,500 cars per month for the four months between April to July and later ramp up production to 21,000 units every month.
He said the company is aiming to launch Getz, a car positioned between Santro and Accent, in July.