The company said it has been making concerted efforts to absorb rising costs but has ultimately determined that some price adjustments will be necessary.
19 Mar 2025 | 4994 Views | By Angitha Suresh
Honda Cars India Ltd (HCIL) has announced plans to implement a price increase across its entire model lineup beginning April 2025, adding to the growing list of automotive manufacturers in India that have recently revealed similar price revision strategies.
The decision comes as automakers across the country grapple with ...
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Honda Cars India Ltd (HCIL) has announced plans to implement a price increase across its entire model lineup beginning April 2025, adding to the growing list of automotive manufacturers in India that have recently revealed similar price revision strategies.
The decision comes as automakers across the country grapple with escalating input costs and operational expenses that have put pressure on profit margins. According to a statement from Kunal Behl, Vice President of Marketing and Sales at Honda Cars India, the company has been making concerted efforts to absorb these rising costs but has ultimately determined that some price adjustments will be necessary.
"Honda Cars India will revise prices across all models from April 2025, due to rising input costs and operational expenses," stated Behl. "Despite efforts to absorb these costs, some price revision has become unavoidable and will be passed on to customers."
The price hike will affect Honda's complete Indian portfolio, including popular models such as the Amaze, City, City e:HEV, and Elevate. Behl noted that the exact increase would vary depending on the specific model and variant, though the company has not yet disclosed the precise percentage or amount of the planned price adjustments.
Industry-Wide Trend
Honda's announcement follows similar moves by other major automotive players in the Indian market. Kia India recently implemented price increases across its vehicle range, while Tata Motors has announced a price hike for its commercial vehicles. Market leader Maruti Suzuki is also set to raise prices by up to 4% starting April.
Kia India's price revision, which took effect earlier this month, varied between 0.3% and 4.7% depending on the model and variant. The company cited a similar rationale, pointing to increased input and operational costs as the primary factors necessitating the price adjustment.
Tata Motors' commercial vehicle division has likewise announced price increases, with company representatives emphasizing that despite their best efforts to mitigate the impact of rising production costs, some portion of these expenses needed to be passed on to maintain sustainable operations.
Maruti Suzuki, India's largest car manufacturer, revealed plans for a price hike of up to 4% across its model range beginning in April. The company specifically mentioned rising overall input costs as the driving factor behind this decision.
Market Impact and Consumer Response
Industry analysts suggest that these widespread price increases reflect broader economic pressures affecting the automotive sector, including elevated raw material costs, supply chain challenges, and increased compliance expenditures related to stricter emission norms.
The price increases come as many Indian households continue to face economic pressures. However, pent-up demand and the approaching festival season may help offset any negative impact on sales volumes.
Honda Cars India, which has been working to strengthen its position in the Indian market with models like the recently launched Elevate SUV, will likely use the price adjustment to support further product development and manufacturing investments.
The company has not yet released a detailed breakdown of the new pricing structure, but customers have been advised to expect the revised rates to take effect beginning April 1, 2025.
As automakers navigate these pricing adjustments, industry watchers will be monitoring the market closely to gauge consumer response and the potential ripple effects across the broader automotive ecosystem.
Honda Cars India Ltd (HCIL), a subsidiary of Honda Motor Co., Ltd., Japan, was established in December 1995. The company's product range includes the Honda City, Amaze, City e:HEV (hybrid), and Elevate, manufactured at its state-of-the-art manufacturing facility in Tapukara, Rajasthan.
Honda's network includes over 330 facilities in 242 cities across India, and the company remains committed to providing products that exceed customer expectations while minimizing environmental impact.