Honda Siel Cars India Limited is planning to hike prices of its cars from January 2010. According to a recent statement by a senior representative of HSCI, the company will marginally hike prices of all its models from next month. There are several reasons cited by the auto makers for hiking their car prices. One of the major reasons is rise in input costs and falling rupee against the Yen. Many components of Honda cars are being imported from Japan and have become pricier due to fluctuating currency.

"We will increase prices of our models by maximum one per cent from January. This is to offset the rise in input price and fluctuations in foreign exchange rate," Honda Siel Cars India (HSCI) President and CEO Masahiro Takadegawa told reporters in New Delhi.

Apart from currency fluctuations, auto makers also have to make their car more compatible with new BS-III and BS-IV norms coming into force from April 2010. This means additional costs to the car companies that needs to be passed on to customers. Honda currently sells 5 models in India including small car model Jazz, sedans Accord, City and Civic and SUV model CR-V.