Honda Siel Cars India on Thursday said it will marginally hike prices of its models from January to offset rise in input costs and fluctuating foreign exchange.
"We will increase prices of our models by maximum one per cent from January. This is to offset the rise in input price and fluctuations in foreign exchange rate," Honda Siel Cars India (HSCI) President and CEO Masahiro Takadegawa told reporters in New Delhi.
He said prices of many commodities, including steel, have been rising and this has reduced margins for vehicle makers.
"However, we will ensure that the rise is marginal," Takedawaga said.
HSCI is a joint venture between Japanese auto giant Honda Motor Company and the Siel Group.
The company sells five models in the Indian market, including the small car Honda Jazz (Rs 6.98 lakh onwards), sedans City (Rs 8.37 lakh onwards), Civic (Rs 11.8 lakh onwards), Accord (Rs 17.67 lakh onwards), and utility vehicle CR-V (Rs 22.87 lakh upwards). Of these, the CR-V is imported from Japan, while the other models are manufactured in India.
Asked about the recent jump in sales in the Indian car market, Takedagawa said: "Its obvious that there is a revival. But I cannot say how long this will continue. A lot depends on keeping the stimulus incentives intact."