Hit by the historic slump in the car industry, Honda Siel Cars India Limited is finding it tough to maintain the current car prices in India. The company is expected to increase its car prices by one or two percent by January 2009. The company President and CEO, Takedagaw Masahiro, talked to the reported during the inauguration ceremony of state-of-art manufacturing facility from Honda.
"We will not be able to manage the pressure,” he said. "We can't be optimistic. We are preparing ourselves in the next two years .. the situation may worsen." He was optimistic about the Indian car market as the fundamentals are strong and "there are sufficient foreign currency reserves.”
The price of Honda City is expected to remain the same but that of Honda CRV is expected to rise by 6-7 percent as it is a fully imported car. The Indian versions of Honda Accord and Hinda Civic are not available elsewhere in the world. They come with higher suspension, rear seat audio controls and air conditioning facilities.