Honda has announced a price hike of up to Rs. 10,000 for its flagship sedan, the Honda City. The price hike will be effective from April 1st, 2012.
This is the second price hike announced within a week after Honda announced a price hike of up to Rs. 10,500 for the Honda City, post the 2012 Union budget’ excise duty hike.
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With the full implementation of the duty hike, the City prices will go up by Rs 8,000 to Rs 10,000 depending on variants from April 1, 2012. In the 2012 Union Budget, the excise duty for large cars with engine capacity less than 1.5-litres was hiked from 22% to 24%.
Also see: New Honda City road test
The Honda City falls under this category and hence must actually get a price hike of around Rs. 20,000. But, on the contrary, Honda announced a price hike of Rs. 10,500 for the Honda City, post the 2012 Union Budget. Hence, this time, the company has hiked the prices by up to Rs. 10,000 bringing the total hike to Rs. 20,500 and hence passing on the entire burden of the excise duty hike to customers. Read our earlier story: Honda hikes car prices by up to Rs. 94,000.
As per the 2012 Union budget, the excise duty of small cars were increased from 10% to 12% and hence Honda hiked the prices of its small cars, Brio by up to Rs. 10,000 and Jazz by up to Rs. 15,000. The excise duty for large cars with engine capacities of more than 1.5-litre has been hiked from 22% to 27%. Hence, Honda hiked the prices of its sedans, Honda Civic by up to Rs. 45,800 and Accord by up to Rs. 94,000.