Honda Siel Cars India revealed on Thursday that it will marginally hike prices of its models from January to offset rise in input costs and fluctuating foreign exchange.
Earlier, Honda Siel had declined to raise the prices of its products.
“We will increase prices of our models by maximum one per cent from January. This is to offset the rise in input price and fluctuations in foreign exchange rate, ” said Honda Siel Cars India (HSCI) President and CEO, Masahiro Takadegawa.
He said prices of many commodities, including steel, have been rising and this has reduced margins for vehicle makers.
“However, we will ensure that the rise is marginal, ” Takedawaga said. HSCI is a joint venture between Japanese auto giant Honda Motor Company and the Siel Group.
The company sells five models in the Indian market. The third-generation Honda City crossed a significant milestone in its journey in the Indian market, selling more than 50,000 units in just 12 months. The Honda City was introduced in India in 1998 and the third-generation City was launched in India in September 2008 and the deliveries of the car began towards the end of November 2008.