Will April 2014 warrant car price hikes for Mahindra, Honda, Tata Motors and others
The joy that last month’s interim budget brought with it with the announcement of lower excise duties resulting in auto majors reducing car prices seems to be short lived. The recent announcement is that from as early as April, car prices from Mahindra & Mahindra, Tata Motors and Honda Cars India are set to increase.
The increase in prices of passenger cars announced by Mahindra & Mahindra, Honda Cars India and Tata Motors is chiefly to offset higher input costs and added operational expenditure which the companies have had to contend with.
These increased prices of models will come into effect from next month and will affect passenger cars in their range.
It was only last month that M&M reduced prices of their passenger vehicles by INR 13,000 to INR 49,000 following reduction of excise duties announced in the interim budget. Honda Cars India had also reduced prices by about INR 44,000. Each of these companies have not announced quantum of price increase which is currently under speculation. It will not be long before other auto manufacturers such as Maruti Suzuki, Hyundai and others follow suit.