Japanese car automaker Honda India has decided to increase the prices of its entire line up of cars including Amaze, Brio, BR-V, City, CR-V, Jazz and Accord Hybrid from the beginning of 2019. Recently, other automobiles companies including Maruti Suzuki, Ford, TATA, Renault, Toyota and BMW have also announced price hike from January 2019.
Rajesh Goel, Senior Vice President of Honda Car India said, "Our input costs are up by 4 per cent already due to rise in input costs. In order to offset the impact, we are looking to increase vehicle prices from January. We are currently in the process of working out the exact quantum of the hike’’.
However, Honda Cars India is yet to make final call on the price hike which will be taken after broad study on economic factors like input costs and interest rates global factors like forex rates and tax rates.
The current line-up of Honda cars begins from Rs 4.73 lakh to Rs 43.21 lakh. On December 6, Maruti Suzuki also announced price hike on its complete line-up or cars from next month citing increase in commodity prices and foreign exchange rates.
The official statement, “The cost of company’s vehicles has been impacted adversely due to increase in commodity prices and foreign exchange rates. Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price increase across various models in January 2019’’.
Recently, Nissan India also announced price hike by 4 per cent across all its models, Ford India by 2.5 per cent and TATA Motors to increase price by Rs 40,000 across all its cars.
Meanwhile, in the month of November, Honda India registered a 10.67 per cent growth in its sale number of vehicles, from 12,102 units to 13,549 units. Over this performances, Rajesh said, "While the overall auto industry's growth has remained muted, HCIL could register 10% growth last month. This is largely due to Diwali which happened in November this year as compared to being in October last year along with the continued good performance of all-new Amaze and robust sales of models like City & WR-V. Our consumer offers were also very attractive’’.
Even, the export rate for Honda Cars India is increasing constantly every month.