Japanese automobile manufacturers Honda Cars India In view of the increase in production costs, it is planning to increase the prices of its vehicles from January. The company says that this increase is being done to reduce the burden of increasing production costs.
Price is going to increase due to production cost
Kunal Bahl, Vice President (Marketing and Sales), Honda Cars India, said in a conversation with PTI that the company will increase the prices of vehicles from next month due to increasing production costs. He said that the increase in models will be finalized by the end of this month. However, the prices fixed at the time of launching the Elevate model in the market will remain valid only till December 23.
Cars of many other companies will become expensive
Apart from Honda, many other vehicle manufacturing companies are also planning to increase the prices of their vehicles in January. These include Maruti Suzuki, Mahindra & Mahindra, Audi India, Tata Motors and Mercedes-Benz India.
Increase in raw material prices
There are many reasons for this increase being made by vehicle manufacturing companies. The most important reason among these is the increase in production costs. There are many factors behind the increase in production costs, including increase in raw material prices, increase in labor costs and increase in transportation costs.
Implementation of BS-6 standards
The second reason is the increase in expenses to comply with the new rules imposed by the government. The new rules imposed by the government include implementing BS-6 standards, increasing fuel efficiency standards and tightening safety standards.
Competition in the market
The third reason is increasing competition. Vehicle manufacturing companies have to increase the prices of their products to stay ahead of their competitors.