Honda is all set to hike prices accross the range by Rs. 10,000 to a whopping Rs. 1.5 Lakhs due to increased production costs as a result of depriciating rupee andÂ expensive raw materials.
â€œMany of the parts are imported and the rupeeâ€™s depreciation has made them expensive . Thus, we will be revising car prices with effect from the first week of January,â€ said Jnaneswar Sen, marketing vice-president for Honda Siel Cars, India. The hike comesÂ despiteÂ the slowdown in the automobile market in India. Honda’s sales for April-October period 2008 have fell by more than 28%Â to 24,952 units against 34,578 units in the same period, a year earlier.
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The Accord has 75% import content while Civic’s is about 22%. The recently launched all new City has import content of 26%. As a result the Accord will be costlier by Rs. 30,000-50,000, Civic will see an upwardsÂ revision of around Rs. 10,000-20,000 while the fully imported CBU, CRV will see the highest impact with prices increasing by atleast 1.5 Lakh according to Mr. Sen.
The newly launched City will escape the price rise for now since the company wants to make the deliveries at the announced price. The company has already received 5000 bookings for the new City.