Honda to increase CR-V price by 30 pct

Written by Agencies | New Delhi | Updated: Feb 27 2009, 22:04pm hrs
Carmaker Honda Siel Cars India on Friday said it will increase the prices of its sports utility vehicle CR-V by about 30 per cent in May, 2009, besides gradually hiking the rates of other models.

"Devaluation of rupee is impacting our business, because a significant portion of our components are imported from Japan and Thailand. This impact is about 30-35 per cent in case of CR-V," Honda Siel Cars India (HSCI) President and CEO Masahiro Takedagawa said.

"We will increase the prices of CR-V in May and it will be about 30 per cent, otherwise we will make loss," he added.

CR-V is imported to India as a completely built unit.

The company would gradually increase the prices of its other models that are manufactured in India, Takedagawa said.

Asked what could be the quantum of price increase for the models like City, Accord and Civic, he said: "Due to devaluation of rupee, our (CKD) completely knock down units have been impacted by about 9-10 per cent. But the price increase may not be in that level."

The company, which is present in India through a joint venture with the Siel Group, has indefinitely put on hold opening of its second manufacturing facility in Rajasthan. It has also cut its production by 50 per cent from the beginning of this year.