Rollback on reduced excise duties and high input costs pester Honda and Hyundai to hike prices
The Government’s decision to roll back the reduced excise duty on automobiles has pestered automobile makers in the country to make their products dearer for the customers. Currently, Honda has announced a hike in the prices of its cars by upto Rs. 60,000, whereas, Hyundai would make its cars costlier by announcing a minimum price hike of Rs. 15,000 and a maximum price hike of Rs. 1,27,000.
In the coming days, we could hear from many more car makers announcing their plans to hike the prices of their products owing to the withdrawal of reduced excise duties and rising input costs incurred by car companies. In December, last year, many carmakers had announced their intentions to hike their car prices due to higher input costs. The recent rollback of the reduced excise duties seems to be dampening the spirit of the automobile makers in 2015.
For the time being, let us share details about the price hike announced by Honda and Hyundai in India.
Honda enthusiasts who are keen on buying the Honda Mobilio have a good news though. Except for the Mobilio MPV, Honda has announced price hikes of upto Rs. 60,000 on all models across Honda’s portfolio. Honda Brio’s price has been hiked within the range of Rs. 15,000 to Rs. 18,000 taking the car’s price ranging from Rs. 4.21-6.30 lakh. Honda Amaze will now be available within the price range of Rs 5.18-7.78 lakh as the compact sedan from Honda will now be costlier by Rs. 19,000 to Rs. 26,000.
The most popular car in Honda’s product line up, Honda City gets a price hike within the range of Rs. 33,000 to Rs. 48,000, taking the car’s price ranging from Rs. 7.53 to Rs. 11.53 lakh.
Honda CR-V gets a price hike of Rs. 60,000 and will now cost between Rs. 20.85 to Rs. 24.96 lakh
Hyundai, too has announced its plans to hike prices on all models across its product lineup. Hyundai, that sells its Santa Fe, Sonata, Elantra, Verna, i20, Xcent, Grand i10, i10, Santro and Eon, will now make its cars dearer by Rs. 15,000 to Rs. 1,27,000.
The rollback on reduced excise duties would have a dampening effect on the Honda’s and Hyundai’s plans for 2015. While Honda has scheduled the launch of the new Honda Jazz in 2015, Hyundai has scheduled the launch of the Hyundai Elite i20 Crossover, the new Verna facelift and the Hyundai ix25.
Other car makers, namely, Tata Motors, Toyota, Skoda, Volkswagen, Fiat, Nissan Datsun, Ford, Renault, Mahindra, Maruti Suzuki, Audi, Mercedes and BMW are working towards launching their new products in 2015. With the government’s decision to withdraw reduced excise duties on automobiles will pester the car and bike manufacturers to hike prices.
Generating fair sales numbers for the carmakers would definitely be an uphill task for the automobile makers in India.
(Note: All price details provided for Honda are ex-showroom, Delhi prices)