The Indian subsidiary of the Korean auto major, Hyundai Motor Corporation, Hyundai Motor India limited has recently said that the company will be raising its prices by close to 1-1.2% across all its models in its portfolio.

While the hike in the prices has come up because of the rising input costs, it is to be mentioned here that the company hinted earlier this month that it may hike it prices in the short-run.

Arvind Saxena, director of marketing & sales for Hyundai motors India Limited said that the hike in prices has come up because of the hike in raw material prices in the Indian market.

It may be noted here that the company has been facing a threat to its second slot in the Indian market from Tata Motors. In fact, as the largest home-grown auto major is gaining momentum with the production of the Nano, it is believed that the Korean company will have a tough time in the Indian market even going forward.

While it is still a marginal hike announced by the company, analysts are afraid of the fact that if the raw material prices will not cool down, the situation may get worse for the company in the coming months.