Honda Cars to get expensive!

Honda Siel Cars India Ltd, the local arm of Japan’s Honda Motor Co., hiked its car prices on Monday. The models have gone expensive by Rs. 30,000 to up to Rs. 3.5 lakh. the company had earlier announced that it shall hike its car prices to mitigate the impact of cheap rupee on import costs. The new prices of Honda City, Civic and CRV will be effective from April 1, 2009 while Accord will be expensive from March 16 onwards.

As per the revised prices Honda City 1.5 E MT will now cost, ex-showroom Delhi, Rs 30,000 more at Rs 781,000. The Accord 2.4MT will cost Rs 1 lakh more at Rs 17.72 lakh, the Civic 1.8 E MT Rs 50,100 more at Rs 10.5 lakh, and the CR-V 2.0MT Rs 23.44 lakh.

The company cited fluctuation in currency as the reason for hike. “These currency fluctuations have resulted in tremendous increase in cost of imports impacting the bottom lines, but so far, we have refrained from passing them on to the customer. But it is not possible to absorb the impact any more,” Jnaneswar Sen, vice president-marketing, Honda Siel, said in a statement.



http://www.cartradeindia.com/car-bike-news/honda-cars-in-india-get-expensive-110888.html

oh no!
this bad and sad for honda!!

In these recession period Honda has made a bad decision. But still we have a savior for that, it is the tax benefit we receive at the end of FY.

Honda is just adding Fuel to the flames :)

Very less chance of getting Jazz here :(

But i don't think so that Honda will postpone the Jazz's launch now. :)

in this recession period when many automakers are cutting costs of there vehicles , like the mahindra which has recently slashed the scorpio prices. Its strange to know that honda is going to increase the prices of their vehicle.....

Ya vaibhav, Thats right, it will definately lower the sales of Honda Siel.

Honda that badge value comes into play everytime. Honda charges a premium for all its car and usually gets aways with it.

The main reason for the price hike is the rise in import items honda gets from Thailand and Japan.

its always about premium one needs to pay with HONDA bagging, with this price increase as also read in news few days back with hike in their cars prices, not a good move in this market position, so jazz would be more pricey now then expected.Honda facing competetion with other players slashing prices and honda doing it other way..

thackervijay wrote:its always about premium one needs to pay with HONDA bagging, with this price increase as also read in news few days back with hike in their cars prices, not a good move in this market position, so jazz would be more pricey now then expected.Honda facing competetion with other players slashing prices and honda doing it other way..

I completely agree, heard that the Jazz for the 1.2L Engine option would cost somewhere near 6L :affraid:

That is the variant which enjoys tax benefits from the government as a small car, how much would a 1.5L option cost 8L

well manan, expect jazz 1.2L to be around 6.5L and not within 6L budget for sure, for its higher engine atleast 8L with added features if company provides.

thackervijay wrote:well manan, expect jazz 1.2L to be around 6.5L and not within 6L budget for sure, for its higher engine atleast 8L with added features if company provides.

And i am sure, still it will manage decent sale figures because in the end its a HONDA

I read somewhere in this forums that, Jazz will be priced lesser than City. Considering in foreign markets, Jazz is priced above City and also the current hike, i'm expecting Jazz's prices to be upwards of 7 lacs.

CC, right now buddy honda seems to launch their 1.2L engine so may be expect its base model to be around 6-6.5L and higher one around 7L.

May be but I guess i20 retails at that price. Honda as usual will claim premium and push its price even higher.

Following Honda, Toyota has announced hike in prices of its models - corolla altis and Innova. While the Innova prices goes up in the range Rs10000 to Rs50000 depending on the variants, the prices of corolla altis goes up between Rs10,000 to Rs50,000. “So far, we have tried to absorb price increases (input costs) as much as possible, in order to limit the increase passed on to the customers. “However, due to unavoidable reasons such as recent changes in the rupee/dollar and yen/dollar exchange rate, we are now required to make necessary revisions in pricing,” Toyota Kirloskar Motor Deputy Managing Director (Marketing) Sandeep Singh.

2nd Post
As expected, Honda today announced the hike in prices of City,Civic,Accord and CR-V. While ther price of city goes up between Rs30,000 and Rs35,000. However the price of Honda CR-V witness a steep hike in price. The price of CR-V price goes up by Rs 3,54,000. The increase, necessitated by considerable depreciation of Indian Rupee and strong Japanese Yen against Dollar, is in the range of 4% to 20% on the current price. Commenting on the price increase, Mr Jnaneswar Sen, Vice President, Marketing, said, “The rupee has depreciated by over 16% vs USD in the past 8 months. On the other hand, the Japanese Yen has strengthened by 10.5% during this period. These currency fluctuations have resulted in tremendous increase in cost of imports impacting the bottom lines, but so far, we have refrained from passing them on to the customer. But it is not possible to absorb the impact any more.” The revised prices for City, Civic and CR-V will be effective from April 1, 2009 and for Accord from March 16, 2009

3rd Post




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Crazy cat wrote:In these recession period Honda has made a bad decision. But still we have a savior for that, it is the tax benefit we receive at the end of FY.

Please help me understand as to what tax benefit we would receive at the end of FY. Thanks
TSR

The government has announced some Income tax depreciation. It is around 50% on the value of vehicle. I'm not sure about exact details. Will update by tomorrow, after getting the complete details.

government has announced depreciation on vehicles purchased between 1st jan to 31st march to boost up auto industry sales, so if you have your car registred between those dates, instead of usual 10% depreciation available on your vehicle, you can instead have a full 30% depreciation on your car, which helps you in your incometax structure, and that value can be taken off on your profits shown,which gradually would lessen your tax.

Oh! It is only for the vehicles purchased between Jan 1 and 31 Mar. Wish it extends some more days.