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Was out car shopping for a friend and was really surprised when the Hyundai showroom (Advaith) gave me two price lists. One valid till 31st of March and the other effective from 1st April. What surprised me was that post 31st March, prices of the Santro shoots up by 20K. I thought the prices were just revised after the union budget.

On enquirig further, the sales rep gave all the wierd reasons possible. His inital reply was that this is the effect of the Karnataka state budget. On probing further, he tells me it is because of the increase in steel prices and other costs. I realised I had addressed my queries to the wrong guy. A senior customer service representative clarified the increase is because of the hike in road tax.

A 20 k hike, on a 4.2 lac car, coupled with a 1 % hike in interest rate on car loans (thats what the ICICI guy said) will bring back the cost of the car to what it was before the union budget or probably even more. And here we were thinking its hay time for car buyers after the recent price cuts :Frustrati . Even at current levels, vehicle prices in bangalore are among the highest in the country. An irony, when we realise we have the most congested of roads in Bangalore.

PS: The Maruti Showroom (Mandovi) did not mention a word about it. Made me wonder if this is some cheap trick from the Hyundai guys.

Hi!
hyundai are masters in marketing
the facts are here
first : there is no road tax increase in karnataka state budget for the next year. it stands where it is before.
second : show rooms give ex showroom price which does not include road tax
third : all companies make the same cheating in india . this what iam experiancing since 1991 . that is the time manmohan started the eco reforms and started reducing tax rates( excise and customes) on various goods. for the first time all comapnies( even match box makers) announced price cuts imm after budget and increased the same silently after few months
next year onwards they never announced price cut even after budget cuts.
take recent example of VAT. due to VAT car prices should have gone down by at least 5%. but except TATA none other decreased the price
now for hyundai. they are selling the same car( santro) since past 7-8 years. indica came after that. but u see any car magzine oe website they will say indica is dated and needs replacement. but they do not say the same about santro. u go to www.indiacar.com and ask the so called expert car guru . u ask him u wanted to buy zen/wagonr/palio. he will reply u buy santro even when u have not asked him about it. it is so evident. in one answer it was so blatent that he said no where in the country the difference between diesel and petrol is Rs 15 ( here in bangalore it is ) and he said indica diesel will give max of 10 KMPl where as santro will give u 12-14. and the price for petrol os 48 diesel 38. so it does not workout to buy indica. this is the answer. fuel prices are the highest in bangalore where diesel costs Rs 36/- so where in india diesel costs Rs 38/ltr only www.indiacar.com knows
from this it is clear the hyundai are very good in marketing
so they want to increase their profits at govt expense by increasing the prices.
the best one can do is to forget about that company and its products

Car manufacturers are a worried lot
1. Prices were reduced in budget, but discounts were withdrawn, so no difference
2. Interest rates have gone up by 2%
Therefore the budget did not have the impact.
As for road tax going up, most probably its gimmik. hyundai increases its prices now and then and then gives discounts. They will increase the price by 20K and come with a 5 day offer with 40K discount, which is actually a 20K discount, result great sales for those 5 days.

If you look at the current state of affairs at Hyundai I fear they may have to do a lot many rollbacks if (that is if it happens) public gets spooked (ala Daewoo). Probably they are trying to brace up for that by hiking the prices now ;)

I heard that prices for fiesta is increasing in april. Also the loan interest rates!!!!!

I agree with rkg here. The car-guru at www.indiacar.com is totally biased towards Hyundai products. I had asked him once about the Tata 207 DI and he mentioned that they do not discuss that type of vehicles in the website..