Honda Hikes Prices Along with Other Car Makers

Saturday 26 April 2008, 00:00 AM by Satish

The prices of white goods in India are heading north. Auto makers are finding it hard to keep the prices down for their existing and new models each day. Nearly all car makers in India have hiked prices of their models to keep up the manufacturing costs.

Honda Siel Cars India has also decided to increase the prices of its two sedans by Rs. 5000 to 10000. The company resources have reported that rising input costs such as of steel have made it difficult for the company to keep prices under check.

"But it has reached a stage where we have to pass on a part of it to the customers," says Honda company official. He also said the final price hikes will be effective from the next month and shall be intimated to the dealers.

Maruti has already hiked its prices and has intimated its dealers about the same. However, it has also not decided about definitive prices on each of its model. The subdued market has made auto makers skeptical about rising prices on their cars.

"There has been a continuous increase in the steel and commodity prices in the past few months. As a result our input costs have increased substantially. We have been trying to absorb this increase in the input costs, but now we are forced to pass on a p art of this increase to the customers,'' a letter to dealers from Maruti said.