Honda Cars India Ltd (HCIL), the Indian subsidiary of the Japanese car giant, recently announced that it plans to increase the prices of all its models, including those of the high-selling new Amaze and City sedans. The company revealed that the price hike will range from Rs 10,000 to Rs 35,000, depending on the model. This increase in price will be owing to the increased customs duty, higher freight rates, and higher cost of inputs. The increased prices will be effective from 1 August 2018.
With this, Honda Cars India Ltd. will become the second Indian car manufacturer to increase the prices of its models in recent times. Recently, Hyundai Motor India Ltd (HMIL) increased the prices of almost all its models by up to 2 per cent. This price rise was to offset the rising cost of inputs.
Speaking on the upcoming price hike, Rajesh Goel, Senior Vice President, Sales and Marketing, Honda Cars India Ltd, said, “Due to the increasing pressure on input costs, the impact of custom duty hike over the past few months and higher freight rates, we are forced to consider increasing the prices of our cars.” He also said that the introductory price of the recently launched Amaze will also be revised from next month.
The new Honda Amaze is currently available in a price range of Rs 5.6 lakh to Rs 9 lakh. It’s available with two engine and two transmission options. The petrol variant is powered by a 1.2-litre four-cylinder, naturally aspirated motor that outputs a maximum power of 90 PS along with a peak torque of 110 Nm. It comes with a 5-speed manual transmission as standard and a CVT automatic as optional. On the other hand, the diesel variant is powered by a 1.5-litre, turbocharged, four-cylinder motor that outputs a maximum power of 100 PS and a peak torque of 200 Nm when paired with the 5-speed manual transmission. With the CVT automatic, the motor offers only 80 PS and 160 Nm.
The new Amaze became the company’s highest selling model in May with sales of as many as 9,789 units. Even in the month of June, Honda managed to sell 9,103 units of its new compact sedan. It will be now interesting to see if the upcoming price rise would have a negative effect on the sales of the company’s latest compact sedan. The Honda City on the other hand, continues to bring in steady volumes for the Japanese automaker, averaging 4,000 units each month. The Honda City rivals the likes of the Maruti Ciaz, Hyundai Verna and Toyota Yaris.