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Honda cars to become dearer

The company will increase capacity to one lakh units by next year and also hike car prices, reports Deepak Joshi.

india Updated: Nov 28, 2006 17:15 IST

Honda Siel Cars India Ltd, the Indian subsidiary of the Japanese automobile major, on Tuesday launched third generation 2.4 litre sports utility vehicle CR-V and said it was considering an increase in the prices of its cars manufactured at its facility in Greater Noida.

"The price increase will have minimum impact on the Indian customers. We are still working out the quantum of price increase. There has been an increase in the prices of steel and metals as well as the foreign exchange fluctuation. The raise will be across all production models," HSCIL president and chief executive officer M Takedagawa said after unveiling Honda CR-V in five-speed automatic version and six-speed manual variant.

Honda CR-V will be imported as completely built units from Japan and the manual version will be available to customers for Rs 17.70 lakh, while the automatic variant will cost Rs 18.40 lakh (ex-showroom in the Capital).

The new version of CR-V is dearer by Rs 2.5 lakh from its earlier avatar.

"The third generation CR-V, which is being introduced in India within a few months of its global launch, signifies the importance of the Indian market to Honda's plans," Takedagawa stated.

He said though the company hopes to sell 1.5 lakh units by 2010, "we are not in a rush to introduce a small car. We are looking at various options."

HSCIL president said the company will raise its capacity to one lakh units by next year with the expansion underway now. He parried queries about the car company setting up a new plant to meet its target of 1.5 lakh units per annum. "We have not taken any decision on the issue. Whenever we decide, we will let you know," he stated.

Regarding the setting up of Honda Motors India, Takedagawa said the proposed company, which will be overseeing all of Honda's operations in India, has obtained government approval and is likely to officially start operations by December.

HMI is for synergising the operations of four companies of Honda India, he said. "To start with, the company will look after the spare parts and services for four-wheelers and then gradually expand to two wheelers," he added.

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First Published: Nov 28, 2006 17:15 IST