Honda Plans to Hike Car Costs by Up to Rs 1.5 lakh from January’09
Posted on November 23rd 2008Welcome back!
Honda is decided to increase car prices across models by Rs. 10K to Rs. 1.5 lakh from January 2009 to factor in increased production price due to fall of rupee and costly raw materials.
Many of the parts are imported and the rupee’s depreciation has made them expensive . Thus, we will be revising car prices with effect from the first week of January.
- Mr Sen (Marketing vice-president for Honda Siel Cars) said.
The maximum effect would be on SUV CR-V, which is imported to the country as a completely built unit. The cost of CRV will increase by minimum Rs 1.5 lakh.
Whereas cost of luxury sedan Accord will raised by Rs 30K-50K, Civic will possible to be costly by Rs 10K-20K. Several components utilized in the cars are imported from the US and Japan, Mr. Sen said.
Honda’s price increase arrives at a time when car-industry in India is in grip of slowdown because of record-high interest rates and fixed retail financing by the banks. Honda’s sale in April-Oct 2008 decreased 28 percent at 24,952 units compared to 34,578 units in same period last year.
By editor in Auto India News, Auto Pricing, Honda
dreamthecar responded on 25 Nov 2008 at 5:12 am #
Every car manufacturer is under the tremendous pressure due to the present global crisis.Many are even cutting down their production capacity.The car manufacturers are forced to increase the price in order to sustain in the market.Now it is just Honda, soon we can see others too joining the race.
Rahul,
Indian Car Advisor