Honda Cars India has announced a price hike of up to 3 per cent for all its models effective from January 2017. Apart from year end offers and schemes, December is also the month when carmakers announce price revisions for next year. And Honda Cars is the latest addition to that list. In fact, Honda is the seventh carmaker in India to announce price revision for 2017 this month and we expect others to soon follow suit.
Announcing the proposed price increase, Yoichiro Ueno, President and CEO, Honda Cars India said, "Due to the increasing pressure on input costs and fluctuating exchange rates, we are forced to consider increasing the car prices across our line-up. The increased price will be effective from the first week of January 2017."
2016 has been an eventful year for Honda Cars India. The Japanese auto giant launched two new models this year - the Honda BR-V crossover and the new-gen Honda Accord Hybrid sedan along with facelifts two existing models - the Amaze subcompact sedan and the Brio hatchback. In fact, the newly launched Honda Accord Hybrid was named the Green Car Of The Year at our NDTV Car And Bike Awards 2017. In fact, the carmaker is also reportedly planning to launch the Honda City facelift early next year.
Despite that, the carmaker's sales have been going down and Honda has expressed some concerns on the on-going demonetisation drive. The company managed to sell 8,029 units and exported about 697 units last month. The company sold 14,712 units in November 2015 in the domestic market and the company sales have declined by about 45 per cent. Currently, Honda Cars India's portfolio consists of eight models - the Brio hatchback, Jazz premium hatch, Amaze subcompact sedan, City sedan, Mobilio MPV, and BR-V crossover-SUV along with CBU models Honda CR-V and Accord Hybrid.
As for other auto manufacturers, Tata Motors announced its plan to increase car prices from ₹ 5,000 up to ₹ 25,000, while Nissan will hike prices by up to ₹ 30,000. Fellow Japanese auto major, Toyota and German auto giant Volkswagen both will increase prices of their model range by up to 3 per cent, whereas, Hyundai India will increase car prices by up to ₹ 1 Lakh. On the other hand, luxury car market leader Mercedes-Benz will increase car prices by up to 2 per cent.