Honda Cars India has announced its intention to raise the prices of its vehicles starting from next month. This decision comes as a response to the escalating input costs that have been affecting the automotive industry. At present, Honda Cars India offers two models, namely the City and the Amaze, in the domestic market.
Kunal Behl, Vice President (Sales and Marketing) at Honda Cars India, stated that the company has been striving to manage and absorb the mounting cost pressures to the best of its ability. However, due to the sustained increase in input costs, a price adjustment will be implemented for the City and Amaze models from September. The aim of this price revision is to partly counterbalance the impact of the rising input expenses.
The precise extent of the price increase is currently under consideration by the company.
As of now, the starting price for the compact sedan Amaze is Rs 7.05 lakh, the mid-sized sedan City begins at Rs 11.57 lakh, and the City e:HEV (hybrid) model is priced from Rs 18.89 lakh (ex-showroom).
This decision highlights the challenges faced by the automotive industry due to factors such as fluctuating input costs, supply chain disruptions, and changing market dynamics. Manufacturers often adjust their pricing strategies to align with changing economic conditions and to maintain their financial viability.