Japanese automobile manufacturer Honda’s wholly owned Indian subsidiary Honda Cars India has announced its plans to increase prices on its car models the Brio small car, the Jazz premium hatchback and the City mid-size sedan by 0.2 – 2.6 percent. The price hike will be effective from October 1, 2012, stated the company.
The carmaker has decided to raise price in order to make up for the rising input costs and inflationary pressures apart from the increase in freight charges. The hike in car prices comes at onset of festive season which is expected to boost sales in the Indian automobile industry.
The Indian car market has been witnessing falling sales since 2011 which has continued into 2012. Most car manufacturers operating in India expect the festival season to help revive the market as a majority of Indian population considers the festive season around the months of October and November an auspicious time to buy new products and make investments.