Honda Cars India is looking to increase vehicle prices by up to 1.2% from next month to offset rise in cost of raw materials and introduction of new safety features, as per a senior company official.
The company possesses many models from premium hatchback Brio to premium sedan Accord Hybrid, priced between Rs 4.73 lakh and Rs 43.21 lakh (ex-showroom Delhi).
They are working on price increase on their models from July, HCIL Senior Vice President and Director Sales and Marketing Rajesh Goel said.
He said the cost of raw material has shot up in the last few months, but the same is currently being absorbed by the company.
Goel said the company is contemplating to pass on some of the increase in input cost to consumers.
This price increase is due to accumulated raw material cost increases in the past which we have been absorbing so far and also safety regulation implementation. The increase (vehicle cost) would go up to 1.2%, he noted.
This is the second time this year that the company is mulling to increase vehicle prices. The company had announced to hike prices by up to Rs 10,000 across its model range with effect from February this year.
In January, many other automakers had announced to increase vehicle prices. Car market leader Maruti Suzuki India (MSI) had announced to raise prices by up to Rs 10,000.
Besides MSI, automakers like Toyota Kirloskar Motor and utility vehicle maker Isuzu Motors India had also announced plans to hike prices of their respective models from January.
