Honda To Increase Prices Of Its Cars From August 2018

Honda Cars India has announced that it will hike the prices of all its models in the range of Rs. 10,000 to Rs. 35,000 and the revised prices will be effective from August 1, 2018. The company sites the hike in custom duty and increasing input and freight costs for the hike. This also means that the price of the newly launched Honda Amaze will be revised. The company made it clear that the introductory price at which the new-gen Amaze was launched will be revised from August 1, 2018.

Rajesh Goel, Sr. Vice President, Sales and Marketing, Honda Cars India Ltd. said, "Due to the increasing pressure on input costs, impact of custom duty hike over past few months and higher freight rates, we are forced to consider increasing the prices of our cars. The increased price will be effective from 1 August 2018."

Honda has seen its share fall from 7 percent back in 2014 to about 5 per cent in 2017 and the company has lost out to new car launches in new segments by companies like Maruti Suzuki and even Hyundai and in FY 2018-19, the company plans to change that. Honda plans to launch 3 new cars in India out of which the new-gen Amaze has already been launched. The two cars then that remain to be lunched are the new CR-V and the Civic. With the new investment and products, Honda plans to double its share in the Indian market. It won't be easy though, given the fact that Kia Motors is waiting in the wings to launch its new products and both Hyundai and Maruti are eyeing new segments.