Honda Cars India has decided to increase the prices of its entire product range from January 2019 on the wake of rising input cost. The decision to increase the prices is a part of cyclical price revision which has become a norm in the industry. Recently, some of the major carmakers such as Maruti Suzuki, Tata Motors, Ford, Renault, Nissan, Toyota and BMW have also made price hike announcements citing similar reasons. However, the Japanese carmaker has not given the amount of the price increase and has said it could notify about the quantum of increase later.
Speaking to the media, Rajesh Goel, Senior Vice President- Honda Cars India said, "Our input costs are up by 4 per cent already due to rise in input costs. In order to offset the impact we are looking to increase vehicle prices from January. We are currently in the process of working out the exact quantum of the hike." Honda Cars India is yet to take a final call on the amount of price hike which would require a comprehensive decision. Along with internal economic factors such as rise in input costs and interest rates, within the purview will also be some of the global economic factors like the taxation on CKD units and forex rates which are important for the Japanese company to fix the correct price of models like CR-V and the upcoming Honda Civic which are assembled with over 30 per cent of imported components.
Honda at present sells seven models in India- Brio, 2018, Jazz, 2018 Amaze, City, BR-V, 2018 CR-V and the Accord Hybrid. The company is geared up to launch the new Honda Civic Facelift in India in January, the prices of which will likely observe the price hike.