Honda cars to become more expensive soon in India
Honda Cars India is all set to join the growing number of car makers in India who are hiking their car prices. Several carmakers in the country are announcing their decisions to increase the price of their offerings due to the revision in the customs duty rates that was recently announced at the 2018 Union Budget. Due to this taxation increase many car makers have been affected in India, which includes the Japanese auto major Honda.
None of the car models in the entire lineup of Honda Cars India has 100 percent localization in India. Thus, the whole Indian product portfolio of the Japanese car maker is going to be affected by the increased import customs duty charges, which means that Honda Cars India will be hiking the prices of its entire range of products. It has come to light that Honda India will be announcing its price hike sometime in the coming weeks, as the car major is still working on how much of the increased duty charges it should be passing on to its customers. It is expected that the price increase percentage will be somewhere around the range of 2 to 3 percent.
At present, Honda Cars India sells a total of 8 car models in the car market of India, namely – the Honda Brio compact hatchback, Honda Amaze subcompact sedan, Honda Jazz premium hatchback, Honda WR-V crossover, Honda City premium sedan, Honda BR-V crossover, Honda CR-V premium SUV and the Honda Accord Hybrid executive sedan. While the Accord hybrid is a fully imported or CBU car, the CR-V comes to India as a CKD unit which is assembled in India. The rest of the car models are fully manufactured in India, locally. However, they don’t have 100 percent localization, which means several parts are imported for these cars. Now, as the basic customs duty of auto parts, accessories and CKD components have gone up. So, the India-made Honda cars will also get a price hike. On the other hand, the customs duty for the CKDs and CBUs have been increased considerably, thus, it is expected that the Honda Accord Hybrid and the CR-V will witness some good price increase.
Honda Cars India has revealed that the company has been already importing the new cars parts into India after the Budget announcement’s customs duty increase has come into effect. That is the reason, why the Japanese auto major is working on finalizing on the decision of increasing the pricing of its product range very soon. The prices of the Honda cars in India right now are unchanged, but the prices will soon be increased as and when the Honda Cars India makes an official announcement about the same. So, all the potential Honda car buyers should rush to their nearest authorized Honda dealer and buy their new car before that official price hike announcement comes. Many more car makers are expected to follow the price hike strategy within March in India, which will be the second such increase as most of the car makers have already increased their product pricing in January this year.