rahul1810

Honda announces price increase

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As expected, Honda today announced the hike in prices of

City,Civic,Accord and CR-V. While ther price of city goes up between

Rs30,000 and Rs35,000. However the price of Honda CR-V witness a steep

hike in price. The price of CR-V price goes up by Rs 3,54,000.  The

increase, necessitated by considerable depreciation of Indian Rupee and

strong Japanese Yen against Dollar, is in the range of 4% to 20% on the

current price.  Commenting on the price increase, Mr Jnaneswar Sen,

Vice President, Marketing, said,

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Oops, this would put CRV almost out of contention if the other players do not follow suit.

Accord also becomes dearer by a Lakh! Civic will feel the heat from Altis now, which had already reduced its sales to around half.

City's fate needs to be seen in the wake of this developement. But as I said lot depends upon the competition, if they too raise prices, then it becomes a level playing field, otherwise Honda better watch out.
BornFree2009-03-09 13:25:00

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Honda has played into others hands. It has now indirectly resigned from being the market leader in whichever segment it had its cars. City has got worthy competition in SX4 and linea. Civic has got competition from Altis while CR-V is soon going to lose it out to Outlander or captiva.

I espescially wonder about City's fate. Most of the people I have known who own a City have bought it after extending their budget by almost 50000 just for the looks and refinement. With Maruti offering mouth watering deals on SX4 and fiat linea sales gaining momentum it looks quite certain that THE ERA OF CITY IS OVER.

About Accord it remains to see how the competition responds. Skoda is due to launch next gen laura by june (which sure looks breathtaking) and if it prices it competitively i am pretty sure honda will lose its market leader tag in that segment also. And frankly I see skoda as a more premium brand than honda(my personal opinion).

Honda should have learnt the art of localisation from Hyundai and Toyota. Even toyota is a japanese company, it also has the crisis of rising yen and falling rupee against dollar but we dont see it increasing its price.

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civic which is already priced higher compared to altis gl,now with 59000rs increase from april & especially with out any features compared to altis,people thick thrice before going for civic at that price.

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There will surely be a dent in the sales of Civic and CR-V which were already facing stiff competition from Altis and Captiva respectively.

I don't think Accord's sales will be affected as there is no car which comes close to it in that price bracket.

It will be interesting to see the fate of City though.

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@ rahul : I don't think Laura is in the same league as that of Accord although it is in the same price bracket.

Most importantly it's a diesel car, so it has different buyers.

Potential Accord buyers may still prefer the Accord as it is still cheaper than Camry.

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Wrong move by Honda. Not the right time. I can imagine what would happen if rupee vs dollar touches 54+ ( as per Std. Chartered bank). Civic till Feb was selling marginally more than Altis. Now Altis will be more VFM than before.

City which was already overpriced seems to be entering Civic segment soon!!

Btw one question- If i book the City say in a week and get delivery in 1st week April do i have to pay this new price ??? Since revised price for City is after April 1st.

CRV is kinda doomed. With Toyota SUV coming and Captiva already gaining some good market share. Its market share is going to reduce big time.

Accord- Though quite expensive now , but still Camry is few lacs more expensive so Accord still would nt feel that much heat.

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@Karan

When you book you get a price quotation of the car which says about everything you have booked. The price is also mentioned and that is always the current price and the current offer

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I got a call from honda dealer that the prices are going to be hiked & even if we book the vechile in this month & take the delivery in april the new prices will be applied.He told that the day u invoice the car,the same prices will be applicable.Tomorrow im going to honda to clarify the same.

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I bet that honda would not lose in India..because of it's brand value..A person spending more than 8 lakh on a car can afford to lose more 30000-40000..But I can't say about CRV...New City lacks in lot of goodies when we compare it with other competitors in the C segment with a higher price tag..but people still buy it..same is with civic and accord...It all depends on brand image of a company..

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but still honda cant make a fool out of the indians.

spending 9 lacs on a city(10 lacs in some cities) will not be a good decision.

people will go for linea ,sx4 and fiesta.

fiat people..time to rev it up.

fortunes are favoring you now.

 

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I got a call from honda dealer that the prices are going to be hiked & even if we book the vechile in this month & take the delivery in april the new prices will be applied.He told that the day u invoice the car' date='the same prices will be applicable.Tomorrow im going to honda to clarify the same.[/quote']

Thanks for the reply guys!!! Damn there goes my 30,000 down the drainsmiley7.gif. City was already overpriced .

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It is the time to wake up for the toyota and fiat. Honda badge lovers will throw the badges to the dustbins. This is really not a wise move by the Honda.

 

CRV will never be even thought by anyone in the future.Toyota is already a proven successful brand and if the Fiat improves the A.S.S for their cars. Then this should be the jackpot time for the Fiat with Linea hitting the roads with larger volumes.smiley1.gifsmiley17.gif
rki20072009-03-10 04:20:38

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Honda clarified that the price difference between the exchange rates have been up cause of which they had to take this move which made their models more costly ranging from 30K to to almost 2L.

But this is what Honda hasn't learned. It has been here for so many years but it has not been doing appropriate localization. This has caused such an increase in price.

Toyota has not increased its prices. How is it immune to this exchange rate is what Honda needs to learn

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Toyota has not increased its prices. How is it immune to this exchange rate is what Honda needs to learn

FYI, Toyota too had increased prices of Altis few months back. Thats what made price diff between Altis and Civic closer . Altis now seems a real VFM.

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Well seems that Honda isnt interested anymore in india...With launch of less equipped overpriced City, discontinuation of S model of Civic and making it more expensive, Pricing CRv like anything they have proved that they arent interested any more..

Even toyota, Fiat, and all companies should be affected by devaluation of Rupee, but why only Honda..

And by this increase City is even more expensive like anything..

Honda is loosing the game without any reason just by making more profit in more competitive market..

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This is something interesting to wait and watch for:

As of now people were already shelling out extra amount of money to have that HONDA experience, and now Honda is asking for more....

Guess Honda tycoons sitting at the top would have taken into the account the huge gap in price of its car with the competitors.....or may be they want to restrict themselves to the premium few......OR they are so confident about their product that they know they will sell no matter what..

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The real shocker is yet to come. Recently I read an interview of a Director of Honda India that Accord V6 would be priced at 25 lacs. Imagine a regular Accord at 17 Lacs but the same car with a bigger engine and (probably) few more goodies at 25 lacs.

 

And all these price increase in time of recession. Wonder how many people will buy Honda in future??

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i think honda is not intersted now in selling cars. it is not a way to be a price leader.

no doubt cars are superb at their level. but hike of maxm upto 4 LAC will prove sucidal for HONDA

MAY GOD BLESS HONDA IN RECESSION TIME

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I got a call from honda dealer that the prices are going to be hiked & even if we book the vechile in this month & take the delivery in april the new prices will be applied.He told that the day u invoice the car' date='the same prices will be applicable.Tomorrow im going to honda to clarify the same.[/quote']Thanks for the reply guys!!! Damn there goes my 30,000 down the drainsmiley7.gif. City was already overpriced .

Yes karan, the price prevailing at the time of delivery is only applicable.

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