Honda Seil Cars India, the manufacturer of India’s first hybrid car, is all set to increase the prices of its car models from January next year.
The depreciation of Indian Rupees and high cost of production has forced the company to take such an initiative. With this, the Honda car prices are expected to be raised by Rs 1 Lakh to Rs 1.5 Lakh.
Marketing Vice-President for Honda Siel Cars, Jnaneswar Sen, said, “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.”
According to Sen, the highest impact would be on Honda CR-V with the price rising to about Rs 1.5 Lakh because this is imported to India as a completely built unit (CBU).
The price of the luxury sedan, Honda Accord, will go up by about Rs 30,000-50,000 and that of Honda Civic will be raised by Rs 10,000-20,000. The key reason for increasing the prices of Accord and Civic is because almost 75% of the car components in Accord and about 22% in Civic are imported from Japan. With the decline of Indian Rupee value, the imports from Japan have gone up by about 30-35%.
The price hike at a period when the car industry is in the grip of recession will affect Honda’s car sales in the upcoming years.