The inevitable price rise of its cars has made Hyundai to come out with the justification of the hike in the raw materials. With no time bound rise, the company said the input cost has increased at large making the company to announce the hike, on the lines of Maruti which has since increased the price for its models by Rs7500/ barring Alto. The cost of tyres has increased due to the rise in the price of rubber. This has made an increase of 10% in the price of tyres and there has been a projection of increase by 25% if the situation continues so. Apollo Tyres has already increased its price by 10% and is in the process of making an another one. while the steel rate too rose which is the major constituent for the components. Hyundai is in a grave situation to overcome these rise and at the same time is to convince the customers on this issue.