The relentless surge in commodity costs has made Honda Car India to hike prices of all its products with effect from August 2 to mitigate the impact.
While the petrol variants of Amaze, Jazz, WR-V and City saw an increase of Rs 9,000 to Rs 16,000 some diesel versions saw a steeper hike. Some diesel variants saw a jump between Rs 80,000 and Rs 1,00,000.
This is the third price hike by the Japanese premium brand so far in 2021. The company had increased prices in February and April by Rs 20,000 and Rs 10,000, respectively.
In July a senior Honda Car official had said, “Prices of steel, aluminium and precious metals have increased sharply and many of them are at an all-time high, impacting our input costs significantly.” Sources added that the current price hike does not fully mitigate the input cost pressure.
Honda is the latest to join the league of companies who have announced price hikes. Maruti Suzuki, Mahindra & Mahindra, Renault and Toyota Kirloskar have raised prices. Tata Motors said it will hike prices after August 31 while Hyundai Motor India is also looking at a price hike.
Commodity prices are expected to remain at multi-year highs in the first half of FY22 (resulting in multi-year high average in FY22), before softening in the second half of the year, as per report from rating and market intelligence company ICRA.
The hikes are coming at a time when demand for passenger cars has touched pre-pandemic period with manufacturing facilities running all three shifts at full capacities. However, due to cheaper loans and greater need for personal mobility demand for cars is likely to remain unfazed.
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