Honda To Hike CR-V Prices By 30%

Honda Siel Cars India has said it will increase the prices of its sports utility vehicle CR-V by about 30% in May, 2009, besides gradually hiking the rates of other models.

“Devaluation of rupee is impacting our business, because a significant portion of our components are imported from Japan and Thailand. This impact is about 30-35% in case of CR-V,” Honda Siel Cars India (HSCI) President and CEO Masahiro Takedagawa said. “We will increase the prices of CR-V in May and it will be about 30%, otherwise we will make loss,” he added.

CR-V is imported to India as a completely built unit. The company would gradually increase the prices of its other models that are manufactured in India, Takedagawa said. Asked what could be the quantum of price increase for the models like City, Accord and Civic, he said: “Due to devaluation of rupee, our (CKD) completely knock down units have been impacted by about 9-10 per cent. But the price increase may not be in that level.”