Honda Cars India has hiked prices of its entry level car Brio and compact sedan Amaze by up to Rs 800 to offset change in cost structure following tax rationalisation in the Budget.
Brio prices have been hiked by Rs 600 while those of petrol and diesel variants of Amaze have been enhanced by Rs 800 with effect from April first week.
After the hike, Brio is priced between Rs 4.21 lakh and Rs 6.79 lakh, while Amaze is priced at Rs 5.18 lakh and Rs 8.21 lakh (all prices ex-showroom Delhi).
“After the rationalisation of duties in the Budget, our cost structure changed but we didn’t want to pass it to consumers in March as it is usually a good month of sales. So we decided to hike prices marginally in April,” Honda Cars India Ltd Senior Vice-President (Marketing & Sales) Jnaneswar Sen told PTI.
The company has not hiked prices of any other models.
This is the company’s second price hike so far this during the current year. In January, the car maker had hiked prices of its entire range of vehicles by up to Rs 60,000.
The Japanese car maker in January had hiked Brio prices by up to Rs 18,000 and that of CR-V by Rs 60,000.
The move followed the government not extending excise duty concessions given to the auto industry and consumer durables sectors after the expiry on December 31, 2014.
Honda currently sells five models in the country, including the fourth generation mid-sized sedan City and multi purpose vehicle Mobilio.
Driven by strong sales momentum for its cars throughout the year, the company posted its highest ever annual domestic sales of 1,89,062 units during FY 15, recording 41 per cent growth over last financial year.