Honda India to increase prices of its cars starting next month

This would be the second price hike in 2015. In January, company upped prices upto INR 60,000

Some bad news for auto buffs. Honda India will be increasing prices across the range of its models which would be effective from April 1st 2015. This time also company has cited the same reason of ‘rise in input cost’ which was quoted last time.

The Union Budget 2015 was not rewarding and brought 0.5 percent hike in excise duties that resulted in price increase of small cars where Brio and Amaze falls under the purview. The news has come at the time when Honda has shown staggering 44 percent growth last fiscal year and this February, a record 16 percent growth in sales.

Mr. Jnaneswar Sen, Sr Vice President, Marketing Sales, Honda Cars India Ltd said "We are working on increasing the prices of vehicles across models from April due to the cost pressure,".

But despite the troubling news of price hike, there is absolutely no stopping when it comes to sales of cars. Honda City, the most bankable product from the stable has been clocking over 6,000 units right from the starting of this year, unquestionably defying the arrival of Ciaz in the segment. While on the other hand, Amaze is also witnessing amazing growth recording 6,709 units and 7,163 units in January and February 2015 respectively.

Source: ET

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