Honda to hike car prices

Potential buyers of the Honda Brio, Jazz and City need to make up their minds quickly as prices of these models are set to increase come October 1. The hike isn’t alarmingly high and is in the in the range of 0.2 per cent to 2.6 per cent on models’ current price. This translates to an additional Rs 800 to Rs 13,500 on the Brio; Rs 1,170 to Rs 16,500 on the Jazz and Rs 1,450 to Rs 27,200 on the City sedan. 

Honda says the price rise was necessitated due to rising input costs, inflationary pressures and increase in freight as a result of the increase in diesel prices. Interestingly, the big H had slashed prices of its Jazz premium hatchback just last year, from Rs 7.13 lakh to Rs 5.85 lakh for the base variant, and Rs 6.33 lakh from Rs 7.48 lakh for the top end model.

Honda sold 5,470 units in August 2012 as opposed to 6907 units in the same month last year. With sales drying up and petrol cars losing their sheen to diesel counterparts, the Japanese car major faces an uphill task ahead to revive sales.