Honda Siel Cars India (HSCI) has announced a second price hike of Rs 8,000-Rs 10,000 on its flagship sedan car model Honda City with effect from April 1, 2012. The company has already increased prices across all car models in its portfolio with a hike of Rs 5,000-Rs 10,500 on the Honda City in response to the increment in the excise duty in the Budget 2012-13.
According to Mr. Jnaneswar Sen Honda Siel Cars India (HSCI) Senior Vice President (Sales and Marketing), the company is compelled to transfer the additional costs to the customers. The earlier hike was a partial cost being passed on to customers. With the implementation of the new hike, the company will pass on the total effect of the excise duty hike.
As part of the Budget 2012-13, the excise duty has been raised from 10 percent to 12 percent resulting in a hike in prices across various car segments in the automobile industry.