Honda Cars India Ltd (HCIL), the completely owned subsidiary of Japan-based Honda Motor company, has registered a surge of 15.76 per cent with total sales standing at 5,508 units for the month of September 2012. In the corresponding period last year, the auto maker managed to deliver 4,758 new vehicles to the buyers.
During the period, the two-wheeler maker sold 2,064 units of its Brio hatchback and 2,815 units of its iconic sedan City. The sales of premium hatchback Jazz stood at 556 units, while the executive sedan Civic was able to find only 47 new buyers. The demand for premium sedan Accord was not so appealing in September 2012 as the company delivered just 23 units, while sales of CR-V Sports Utility Vehicle (SUV) was hit the most as just 3 units were sold during the period.
On the other hand, the company has surged the prices of its iconic models, Brio, Jazz and City, with effect from October 1, 2012. The reason cited behind the price hike stated that the cost of inputs has increased, which is coupled with increase in freight and inflationary pressures. However, the price hike is not alarming as the surge has ranged between 0.2 per cent and 2.6 per cent on the current price of the mentioned models. Interestingly, the auto maker had slashed the prices of Jazz last year to Rs. 5.85 lacs from Rs. 7.13 lacs for the base model, while the top-of-the line variant was brought to Rs. 6.33 lacs from Rs. 7.48 lacs.
The impact of price hike is expected to hit the sales of the car maker; however the impact cannot be judged. Surge in the prices of car models amid ever increasing fuel prices have hit the sentiments of Indian buyers very hard and effect of the same will be surely seen in the sales of October 2012.
