Hyundai Motor has said it would raise prices for major models sold in its home market next month as international raw material costs continue to go up.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the JoongAng Daily website, the company said cars sold in South Korea will retail at an average of 3% to 4% more.
Steel accounts for 20% of the manufacturing cost of a car, and steel prices rose an average of 8% last month, the report said .
The price increase reportedly will apply to Hyundai’s new Sonata passenger car, the Tucson SUV and Grandeur luxury sedan which make up 60% of the company’s sales.
JoongAng Daily noted that Hyundai Motor in January raised the price of export models that were exported overseas by an average of 500,000 won.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHyundai’s move reflects its strong position in Korea, an auto industry expert told the newspaper.
“Japanese automakers, who face extremely fierce competition domestically, rarely raise the prices of their cars at home,” an official at the Korea Automobile Manufacturers Association reportedly said, adding: “Instead, they raise prices on cars that are sold abroad. Hyundai’s confidence as a dominant player in the domestic auto industry, with a more than 50% market share, is behind its price hike here.”
Ahn Soo-woong, an analyst at Hanwha Securities, told JoongAng Daily that Hyundai Motor’s price increases should boost profits in the second quarter.
