Stop there if you plan to buy a new car in January 2024. The news may not be too pleasing for you! Honda will increase its car prices next year in January. However, if you live in America or any country outside India, relax a bit!
It is only Honda Cars India that has decided to raise the price of its vehicles within the country purchases. Following this, other automakers like Maruti Suzuki India, Hyundai Motor India, Tata Motors, Mahindra & Mahindra, and MG Motor India will also raise the prices of their car models in January.
Till now, no quantum amount was declared for the price hike. But one thing we can guarantee is every car model will welcome a price hike, and the amount is sure to vary across different models.
If you think the price hike is unfair, let us remind you every carmaker can now increase automobile prices twice a year.
Honda cars to get expensive from Jan 2024!! Details Below,
As we all know, Honda is a Japanese automobile manufacturing company. In the Indian market, only three models of Honda are available – The Honda Elevate, the Honda City, and the Honda Amaze.
Only a few days ago in September 2023, Honda released one of its highly competitive compact SUV segments in India – the Honda Elevate. The initial introductory price was set at Rs 11 Lakh.
However, as per the statement from Kunal Behl, the newly launched Elevate will also have a price revision by January 2024.
Here’s What Honda Officials Say,
The decision is final! Kunal Behl, Honda Cars India Vice President (Marketing & Sales) confirmed it as a frontier. However, before we received a final statement, it was obvious that the decision was made in response to overall inflation and increased commodity prices. The automakers have to neutralize the cost pressure and ensure product value.
Kunal Behl also said, “The model-wise amount of increase will be finalized by the end of this month. Our new model Elevate which was launched at an introductory price has been well received by the market with very high customer consideration. The introductory price will be valid till December 23 and the price will be revised from January 2024,”
As a reason, he said that this has to be done to eliminate the pressure on high input costs!
Thus, if you have your eyes on the Honda Elevate, you should purchase it at the introductory price before December 23rd, 2023. Otherwise, you have to purchase at the revised price after December 23rd.
It has been also reported that the Japanese OEM will also raise the price of different gears. So, in the next bid, things might get hard for the automakers. To mitigate the higher cost, a price hike became unstoppable.
**Note: OEM stands for Original Equipment Manufacturer. Japanese OEM doesn’t represent only one company. Rather, it is a term that defines a group of companies that manufacture products or car elements.
The components are then used by other companies to finish the final products. It’s often called commissioned manufacturing. Often automakers outsource the end parts to these companies as a helping hand.
The Numbers & What Other Officials Have to Say,
Although the exact amount of the price hike hasn’t been released for Honda. An estimated report was made for Maruti as India today.
Maruti has raised 16.7% of its initial price from Rs 5,51,677 to RS 6,43,688. It happened only within a year from quarter two of the 2023 fiscal year to quarter two of the 2024
Here’s what Maruti has to say, “While the company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market,” in an official statement.
Like Honda, Maruti cars with revised prices will be available in the market from January 2024, as stated by Maruti.
As per Hyundai, a new model is in the lineup scheduled for January 16, 2024. The company will launch the new Creta (India-based). The new model will launch in the market with the renewed price.
Hyundai will officially rev up the price of its cars from January 1. They also confirmed that it was due to seamlessly accelerating input costs. Additionally, added up with high exchange rates and rise in daily commodities as other factors.
Tarun Garg, Hyundai COO said, “At Hyundai Motor India, we always try to absorb the cost escalations to the extent possible and ensure continuous customer delight. However, it has now become imperative to pass on some portion of the rising input cost to the market through a minor price increase.”
Although the company claimed it was a minor price hike, we are yet to find out how customers react to the revised price.
Mahindra, however, is a bit selective about increasing their prices. The company is likely to hike the cost of its sport utility vehicles (SUVs) and commercial vehicles (CVs) from January.
An official from Mahindra said in an official statement, “Mahindra has made efforts to absorb as much of these additional costs as possible. However, a portion of this increase will be passed on to customers. The extent of the price increase will vary across different SUVs and CVs,”
Lucky for you! If you are about to buy a Mahindra, you can browse through the other options such as multi-utility vehicles (MUVs), or Hatchbacks.
Overview
Before you get upset, let us assure you it’s an industry standard to meet trends and negotiate economic factors.
The world is going through a crisis now! The ongoing war has put the commercial raw market at stake.
Have a look at the supply chain disruptions, variations in global markets, and other geopolitical facts. The automotive industry, along with other industrial sectors is going through this change and it’s time to mitigate and distribute the costs for a better economic landscape.
If you are too deeply affected by this price hike, please consider the facts. Or else, you can also look for pre-owned Honda cars, have installment benefits, or simply wait for the festival offers! It may help you to cut the load off your pocket.
Additionally, always keep an eye on automotive industry updates. It will help you in the long run.
Share this news with your friends who are planning to buy a Honda vehicle next year! If it’s all right, it would be wise to pick a car before the 23rd of December 2024. Most vehicles will have a renewed price after this!
We will soon be back with another useful article on Honda.
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