In a surprise decision, Honda Cars has decided to increase prices by a “few thousand rupees” across its entire range starting April 1 to offset higher input costs.
The move comes shortly after Honda and most other carmakers like Maruti Suzuki and Hyundai reduced prices after the excise duty cut by the government in the budget announcement last month in a bid to push sales.
Jnaneswar Sen, senior vice-president for marketing and sales at Honda Cars India told FE, “We are deciding the quantum of price increase and are working with our finance and accounts team. It will be effective from April 1”.
The price hike includes the new City sedan model, which commands a waiting period of over half a year, besides others like the Amaze, Brio and CR-V.
Honda, which currently operates a 1.2 lakh unit per annum plant in Greater Noida, Uttar Pradesh, recently started operations at a second plant in Tapukara, Rajasthan with a similar initial capacity.