Be prepared to pay High for Honda Cars

The leading car maker from Japan is frequently seen in the limelight due to its new models and innovative technology reasons. Once again the India wing of the company is in the limelight, but this time it is due to price hike news from the company. In a press release recently the company has intended to raise the prices of its various models. As per the company the hike would be up to Rs. 60,000 on different models. As per the company there is tremendous pressure on the company to raise the prices due to concessions removal of excise duty and the prices of various other inputs required for the manufacturing of models are also increased. This is the second incident when the company has raised prices of its various models after the month of January in this year. The company told the media that due to heavy inflationary pressure it is forced to hike the prices, however, yet it is not declared which model will suffer with how much price hike.

The information of the hike in prices to media was provided by Mr. Jnaneshwar Sen. Mr. Sen is the Sr. VP of Marketing and sales of the company in India wing. As per him the company is going to increase various models, prices as the cost is constantly increasing. The prices will be raised across all the models with effect from the month of April.

As per the experts in auto and finance, the company has been under the huge pressure for its small cars since almost February when in the budget the Government had made a few adjustments to the car duty structure of small cars. According to the Union Budget the excise duty is raised as 12.5% from the level of 12% and now the education cess which was applied on a different cost which means cost plus excise duty of the vehicle is removed hence, the small car segment is under a pressure to raise the prices. The Honda also has small cars in this segment, which are Brio and Amaze.

In the recent time this is the second incident when the company has declared price hike in its various models due to some external factors. In the month of January also the company had raised the prices of its different models because of the increasing cost of manufacturing different models.

As per the market experts the rise in prices of the models is justified as almost all the companies have the same condition and in coming days other companies may also declare such hike in the prices of their different models. However, yet there is no news from any other company about the increase in the rates of any of their models but it is expected very soon. The auto sector does not look very happy with this situation as it may hamper the sale of the vehicles which is back on track after many serious efforts made by the Government as well as the auto companies.