Honda Plans to Hike Vehicle Prices From August as Input Costs Go Up Sharply

New Delhi, Jul 4: Japanese automaker Honda is set to hike costs of its entire model vary in India starting subsequent month as it seems to be to counter the influence of a pointy rise within the procurement price of assorted important commodities together with metal and valuable metals, in accordance with a senior firm official.

The company, which retails diverse styles including Urban and Amaze is currently working on the quantum of the increase that it will pass on to customers. Honda CB350 RS Motorcycle with Prices Starting from Rs. 1.96 Lakhs Launched in India; Bookings for the Honda CB350 RS Opened Along With The Price, Features and Specifications

Steel, aluminium and precious metals of a number of inputs had seen spike in their prices, and many such are witnessing an all-time high price rate which involves us hampering our input costs significantly," Honda Cars India Senior VP and Director (Marketing and Sales) Rajesh Goel told PTI.

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The company is currently working on the details of the price hike which will be implemented from August, he said.

“Our endeavour is to keep acquisition cost low so we are now evaluating how much of the additional cost could be absorbed and how much would necessarily need to be passed on to our customers,” he added. The new prices will be effective from next month," Goel said.

The company had previously raised prices in April this year. The costs of metals, particularly steel has increased in the country over the last few months. Main home steelmakers had raised the costs of Hot Rolled Coil (HRC) and Cold Rolled Coil (CRC) by as much as Rs 4,000 and Rs 4,900 per tonne separately in June.

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HRC and CRC are flat metal merchandise utilized in sectors together with auto, home equipment and development. So, increases in metal prices on the costs of autos, shopper items, construction prices.

In addition, the prices of valuable metals such as rhodium and palladium have almost doubled affecting the production rate.

It is rhodium and palladium which gets used inside the catalysers and their demand has increased manifold after stricter emission norms have come into place in countries around the world.

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As the prices of raw materials continue to increase, Maruti Suzuki India (MSI) announced in June that it will hike prices across its entire product portfolio during the September quarter. The auto principal has already enforced a value improvement in April.

MSI had on April 16 announced a weighted common worth hike of 1.6 per cent in ex-showroom costs of fashions. Earlier this 12 months, on January 18, the automaker had announced a value hike of choose fashions by up to Rs 34,000.