Honda Cars India will increase prices of its cars by 3 percent and will be effective from January 2017. Honda is the seventh carmaker to announce the hike in prices cars for 2017 and others are set to follow.
Yoichiro Ueno, President and CEO, Honda Cars India said that due to the increase in pressure on input costs and fluctuating exchange rates, they were forced to consider increasing the car prices across their line-up. He added that this increase in price will be effective from January 2017.
Carmakers offer year-end discounts and schemes in December and apart from this, they announce price hike for the next year as well.
Honda has expressed some concerns on the on-going demonetization drive by the Indian government and reflects the downward trend in the sales of the Japanese automaker.
Honda has managed to sell 8,029 units with 697 units as exports for the month of November 2016. There is a 45 percent decline in the sales as the company sold 14,712 units in November 2015.
In India, Honda sells eight models which include Brio hatchback, Jazz premium hatchback, Amaze subcompact sedan, City sedan, MPV Mobilio, and the BR-V crossover-SUV. The company also sells the Honda CR-V and Accord Hybrid as Completely Built Unit (CBU).
For Honda, the year 2016 has been an eventful year, the company launched two new models - the Honda BR-V and the new gen Honda Accord Hybrid. The company even launched the facelifted version of the Brio and Amaze. Honda is planning to launch the next-generation City in India in 2017.
Along with Honda, car companies like Tata Motors which has announced an increase of price on its cars from Rs 5,000 to Rs 25,000, Nissan will hike prices of its cars by up to Rs 30,000, Toyota and Volkswagen both have announced to increase prices by up to 3 percent.
Also, Hyundai India will hike prices by up to Rs 1 lakh and luxury car maker, Mercedes-Benz will increase prices by up to 2 percent in India.