Honda India to increase car prices from January 2014

It seems that the already affected Indian car industry is going to have tougher times, as several car makers in India are considering further price hikes. The slowdown stricken Indian auto industry is not able to come out of the looming situation as the consumers are shirking away from making major investments in new cars during the ongoing unstable economy, inflation and depreciating rupee. In such a time, most of the car makers have already hiked the prices of their car models, while some are considering increasing the prices a second time with the onset of the New Year.

Honda Cars India (HCIL) has announced that the company is contemplating to increase the prices across its product range in India, from the beginning of the next month, as the company is aiming to partly counteract the adverse effects of the unfavorable exchange rate and high input costs.

The senior vice president at HCIL, Mr. Jnaneshwar Sen told the media on 4^th of December that the company is considering increasing prices from the starting of the first month of 2014. The company will hike the prices across its entire product range comprising Amaze, Brio, Accord and CR-V.

When questioned about the percentage of the intended price hike, he added by saying that the Japanese car major is still working on further details.

The fully owned Indian subsidiary of the Tokyo headquartered luxury car maker Honda, at present is selling only four models in the domestic car market of India in the form of the very popular Brio hatchback Brio, CR-V SUV (sports utility vehicle), Accord sedan and the incredulously successful Amaze compact sedan.

On 25^th of November, 2013 Honda India unveiled the latest generation model of the acclaimed City sedan, which is planned to hit the Indian car market in January 2014 in both the fuel variants of petrol as well as diesel.

Honda India had recently increased the price tags of all its models just in the month of October. The price raise of the models consisted of the range of Rs. 2,000 to 10,000 depending on the models.

Another global auto behemoth operating in India, BMW has also announced about its plans to raise the price tags of its offerings in the Indian car market in the beginning of the New Year. The German luxury car manufacturer has announced in the month of November that it will hike the prices of all its vehicle offerings in the country by up to 10 percent from 1^st of January, 2014. The luxury car giant has revealed that this price increase is part of the company’s strategy for sustainable as well as profitable growth in the country.

Most of the car makers in India including Maruti Suzuki, Hyundai, Mahindra & Mahindra and Toyota Kirloskar have raised the price tags of their vehicles within the months of October-November this year, while a second thought of doing the same again in near future will not come as a big surprise.