Honda Cars India Limited (HCIL), the Japanese multinational auto maker, has announced to hike the prices of its popular models by 0.2 to 2.6 per cent more than the market current prices. The hike will hit the likes of HCIL's best selling products in the Indian car market, such as hatchbacks like Brio and Jazz along with the City sedan, all of which will be available at increased rates from October 1, 2012.
Accordingly, Indian car enthusiasts will have to shell out more than Rs. 1000 on the Brio hatchback, while the premium hatchback Honda Jazz's price will soar by Rs. 15,000 in the domestic market. Further, the admirers of the City saloon will have to pay Rs. 1,000 to Rs. 6,000 more, in order to get behind the wheels of much popular vehicle and the hike cost will depend upon the model of the car. Interestingly, the Japanese auto maker has planned to increase the prices of its most popular models in the Indian car market, while the prices of its premium offerings, such as Civic and Accord saloons and the Sports Utility Vehicle (SUV) CRV received no such hike.
According to a statement released by the Honda Cars India on September 24, 2012, the company has justified the increase in pricing of its models due to the pressure from growing inflation, climbing input costs, raising freight charges, which had arisen after the hike in prices of diesel fuel by the Indian government.
Reportedly, the Rs. 5 hike in diesel fuel price by the government on September 13, 2012 has resulted in an increase in the freight costs for most of the automotive companies operating on the Indian turf. If the increase in prices of diesel fuel wasn't enough, most of the multinational automotive companies functioning in the country have been hit hard by the depreciation in the value of INR, which climbed up by 20 per cent in just one year. Further, the Japanese multinational car manufacturers have been reeling under intense pressure from the increasing value of Yen against INR, which had increased the export duty levied by the government.
Currently the Indian arm of Japanese auto giant, HCIL, is busy with the launch of its brand new Brio hatchback featuring automatic transmission capability along with the soon-to-be launched CNG fuelled version of City saloon, somewhere around the upcoming Indian festivities. It will be interesting to note how the popular Jazz, Brio and City cars fare during the October-December months of the year, during which most of the auto companies register their biggest sales during the season.
