Honda Hikes Car Prices

The company said under the new prices effective from March 17, its entry level compact car Brio will become dearer by Rs 4,000 to Rs 10,000 depending on variants. It will now be available at price ranging between Rs 3.99 lakh and Rs 5.2 lakh (ex-showroom Delhi).Honda Siel has raised car prices by up to Rs 94,000 following the Budget announcement, which increased excise duties across the manufacturing sector.

While the lowest price increase of Rs 4,000- 5,000 has been on the compact hatch Brio, the premium Accord sedan price has seen the maximum rise of Rs 67,500 - 93,975. Prices have also gone up for the Jazz (Rs 15,000), City (Rs 5,000 – 10,500), Civic (Rs 36,600 – 45,800). The sole imported model CR-V has not seen a price change.Tata Motors has already increased prices by about Rs 35,000 this week. Most other automakers are also expected to follow suit.The price increases on vehicles comes after the Government increased excise duties on Friday. In effect, the excise on small cars is now at 12 per cent (from 10 per cent), with large cars (above four metres length) at 24 per cent (from 22 per cent). However, for large cars with engines above 1.5 litre capacity, a new ad valorem rate has increased excise to 27 per cent.

Honda has announced a price hike to realign its prices following an increase in the basic excise duty in the Union Budget 2012-13. The price revision effective from March 17 is applicable on all Honda cars expect CR-V, as the revised prices for the SUV that comes as CBU (Completely Built Unit) are to be confirmed.

The prices of Honda Brio is up in the range of Rs 4,000 to Rs 10,000, while the premium hatchback, Jazz, has become dearer by up to Rs 15,000. Recently launched Honda City Corporate will now cost around Rs 7.10 lakh up from Rs 6.99 lakh, similarly, the prices of other City variants hike by up to Rs 10,500.

he Honda Civic and Accord have seen a maximum hike of 3.5 per cent and the prices of top-end automatic variants are increase by Rs 46,000 and Rs 94,000 respectively.  Click on the model names for new ex-showroom prices of respective models – Honda Brio, Honda City, Honda Jazz, Honda Civic and Honda Accord.Honda’s R&D facility in Japan is working on developing a new economical 1.4-litre to 1.5-litre diesel engine for compact cars – instead of downsizing the existing 2.2-litre DTEC seen in the Accord and CR-V in the European market.

Needless to say that this engine can be a game changer for Honda, as the demand for diesel cars has gone up considerably across the world. Along with development, the Japanese manufacturer has also finalised the long-term plan for the company, which includes using Indian facility as an export hub for the new diesel engines. Honda Siel was probably waiting for the Union Budget 2012-13, and now that government has not introduces any additional taxes to hinder the growth of diesel market, Honda has went ahead and confirmed its plans. Honda will first introduce diesel variants of Brio and Jazz in India and later start exporting the engines to the global markets. Honda has not divulged any details of its plans as yet; and it will have to be seen whether diesel engines will be manufactured at its Greater Noida facility or will move to Rajasthan facility that is currently used to manufacturer components.