Indian consumers are going to witness another round of price hike on motor vehicles, as in a bid to offset the cost of On Board Diagnostics (OBD) cost changes the top car makers look set to make their models dearer. Both Honda and Hyundai have revealed intentions to increase the prices of their passenger cars starting from April 2013 so as to check OBD compliance changes and freight increase.
Honda Cars India Limited (HCIL), a completely owned subsidiary of the multinational Japanese auto major Honda Motor Company, will hike prices of its models across segments by up to 2 per cent with effect from April 1, 2013. Informing about the company’s upcoming price hike decision, a company official has been quoted as saying, “We are increasing car prices from April 1, 2013 by an amount of up to 2 per cent. The details are still being worked out.”
The official confirmed that the changes in OBD cost and increase in freight being the prime reasons behind Honda Cars India's hike plans. At present, HCIL has a diverse product portfolio, comprising Brio and Jazz hatchbacks, City, Civic and Accord sedans, along with the premium Sports Utility Vehicle (SUV) CR-V in the domestic passenger car market. The Honda Brio starts from Rs. 4.1 lakhs, whereas the CR-V SUV is the most expensive Honda model in India with a retail price of Rs. 27.38 lakhs (in the ex-showrooms of New Delhi).
Hyundai Motor India Limited (HMIL), the country's second largest passenger car maker, has also revealed intentions to increase prices of their models across segments in the domestic auto market, with effect from April 1, 2013. Commenting on the company's initiatives, Rakesh Srivastava, Vice President (VP), Sales and Marketing, Hyundai Motor India, was quoted as saying, “The price increase has been necessitated due to On Board Diagnostic Compliance Changes (OBDC). We will try to minimise the hike so as to cause less inconvenience to our valued customers. The price increase across models will come into effect from April 1, 2013.”
Maruti Suzuki India Limited (MSIL), the country's largest passenger car maker, is also evaluating the effects of OBDC at the moment. Further, the company has not divulged any information regarding any future price hikes of its product portfolio, but nothing concrete can be said. Most of the car makers had increased the retail values of their models in January 2013 in order to offset the rising input costs and uncertain currency changes. Experts believe that the upcoming OBDC led price hike will adversely affect the pockets of Indian car enthusiasts.
