The budget this year seems to have created a brouhaha in the whole auto industry and the tremors are still felt days after the budget was announced. The latest news has come out from the stables of Honda which is again going to hike prices of its star seller Honda City by up to Rs.10,000. HSCI already raised the City sedan car prices up to Rs. 10,500 after the excise duty hike. Honda City cost ranged between Rs 7.1 lakh and Rs 10.33 lakh (ex-showroom Delhi). Now from 1 April 2012, Honda City prices will go a notch higher by Rs.8,000 to Rs.10,000 according to the variant. Mr. Jnaneswar Sen, Senior Vice President of Honda Siel Cars India stated that the company had previously passed on the brunt of excise duty hike to its customers to a degree.
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However, as the amount was big, therefore the company has no other choice but to pass on the rest of the amount to its customers only. Mr. Pranab Mukherjee, Finance Minister of India,in this year's budget has hiked the overall excise duty by 2%, which now lays at 12% from the previous 10%. The excise duty was raised from previous 22% with a fixed duty of Rs 15,000 to 24% for over 4 meters petrol run cars with engines under 1,200 cc and diesel engine under 1,500 cc. In addition to this,cars having length above four meters and engine capacity of over 1,200 cc and 1,500 cc in petrol and diesel respectively will now be charged a hefty 27% instead of previous 22% with a fixed duty of Rs 15,000.
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Not just Honda City, HSCI had hiked prices of all its cars by up to Rs. 93,975 after the Union Budget 2012-2013 was announced. Honda Brio got heavier on pockets from March 17, by Rs. Rs 4,000 to Rs 10,000 according to the variant. The current on road price of Honda Brio starts from Rs. 3.99 lakh and Rs 5.2 lakh. Similarly, Jazz prices were raised by Rs 14,972 to Rs 15,000 and now lay at Rs 5.75 lakh to Rs 6.31 lakh. Civic sedan became costlier by Rs 36,600 to Rs 45,800 and is now available at a price of Rs 12.59 lakh to Rs 14.88 lakh across variants. The highest hike was seen in Honda Accord which now costs Rs 20.29 lakh and Rs 27.37 lakh with a hike of Rs. 67,500 to Rs 93,975 according to the variant.
