Honda Cars sales up 23% to 18,261 units in January, expects better outlook with budget announcements

Honda Cars India Ltd (HCIL) recently reported a 23 per cent increase in its domestic sales to 18,261 units in January. The company had sold 14,838 units in the domestic market in January 2018, HCIL said in a statement. The company also exported 200 units last month. "Responding to the tepid market situation with extensive marketing efforts, including on-ground activations focusing on tier 2 and 3 markets, drove sales of all Honda models in the month," HCIL Senior VP and Director-Sales and Marketing Rajesh Goel said.

With additional benefits in direct taxes announced in the Interim Budget presented on February 1st, the company expects the consumer sentiment to improve in the coming months, he added. During the ongoing financial year, the company has registered a cumulative sales growth of 5.7 per cent, selling 1,53,058 units, as compared with 1,44,802 units in the corresponding period last year.

The auto giant recently said it will increase prices of its vehicles by up to Rs 10,000 from next month in order to partially offset the impact of increase in commodity prices and foreign exchange rates.

The company will hike price of its premium SUV CR-V by Rs 10,000 and other models by up to Rs 7,000 from February, Honda Cars India Ltd (HCIL) said in a statement.

"There has been a huge pressure on costs owing to commodity prices and foreign exchange rates and we had been trying to hold this increase for as long as possible. However, we are now compelled to pass on a part of the increased costs to customers effective February 1," HCIL Senior Vice President and Director Sales and Marketing Rajesh Goel said.

The company currently sells a range of products in the country from hatchback Brio to premium sedan Accord Hybrid. Earlier, during the month, Maruti Suzuki India had announced price hike for its select models by up to Rs 10,000.

Besides MSI, automakers like Toyota Kirloskar Motor and utility vehicle maker Isuzu Motors India had also announced plans to hike prices of their respective models from January this year.