Japanese auto major Honda is all set to increase prices in India from January 2021 onwards. The company has not officially confirmed the prices rise but several dealers of Honda cars and industry sources have confirmed this increase. The price increase is part of the annual price revision increase carried out by most auto majors. The price revision is to factor in inflation and rising raw material prices.
Honda’s Indian presence
Honda is present in India through its wholly-owned subsidiary Honda Cars India Limited. Honda has managed to capture 5.44% of the Indian automobile market share. There is a wide range of cars from Honda starting from the compact sedan AmazBrio starting at ₹5.22 lakhs right up to the premium Honda CR-V, the entry-level of which is priced at ₹28.17 lakhs (Delhi ex-showroom).
Honda’s decision to increase costs is fueled by the pressure from rising input costs and currency impact. The model-wise price rise is not yet clear and will be communicated in early January
Honda cars are not the only ones going to get dearer
Honda is not the only one in the automaker space to be increasing prices in the coming year. Other manufacturers such as Maruti Suzuki, Ford India, and Mahindra & Mahindra too have confirmed a price rise in the coming year. The price rise is an attempt to mitigate the rising input costs, especially raw materials and commodities prices. Steel prices, the main raw material, have increased by almost 16% over the course of the year.
It does not seem to be only four-wheeler manufacturers who are set to increase their prices in the new year. Two-wheeler maker Hero MotoCorp too has announced a price rise of up to ₹1,500 effective from January 1, 2020.
Though this year has had more than its share of downs, this may be the best time to buy a four-wheeler for all those aspiring to.