Citing high gas prices and the rising costs of raw materials such as steel, Hyundai today announced it will increase the average prices of its vehicles by 2 percent in overseas markets starting in August. In its home country of South Korea, the hike adds up to an average of 1.9 percent. Hyundai subsidiary Kia ’s new car prices are expected to likewise be affected, but no announcements have been made.
With the price of steel ballooning by some 60 percent since the start of the year and other costs increasing by 20 percent, Hyundai says its decision is a necessary one. The automaker’s troubles are deepened as a partial union strike is planned for two days this week over a wage deal. Unionized employees are planning to stop work for four hours during two shift this Wednesday and for six hours on two shift this Friday, union spokesman Chang Kyu-ho said in an Automotive News report.
The fifth-largest automaker recently bumped the price of some its export models, including the Elantra sedan.
