Honda hikes vehicle prices by up to Rs 79,000

New Delhi: Honda Cars India today said it has hiked the prices of its entire product portfolio by up to Rs 79,000 to offset the impact of infrastructure cess that was proposed in Union Budget 2016-17.

The company has increased the prices with effect from March 1, Honda Cars India Ltd (HCIL) said in a statement.

Honda has hiked the price of its entry-level car Brio in the range of Rs 4,000 to Rs 6,000, premium hatchback Jazz between Rs 5,000 and Rs 19,500 and mid-sized sedan City from Rs 24,600 to Rs 38,100.

It has also hiked prices of multi-utility vehicle Mobilio in the range of Rs 21,800 to Rs 37,700 and that of its premium SUV CR-V between Rs 66,500 and Rs 79,000, depending upon different variants.

The company sells six models in the country, from Brio to CR-V, priced between Rs 4.27 lakh and Rs 25.23 lakh (ex-showroom Delhi).

Already various carmakers including Hyundai Motor India, Maruti Suzuki, Mercedes-Benz and Tata Motors have announced to hike their vehicle prices.

The government has proposed to impose 2.5 per cent cess on diesel vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,500cc while higher engine capacity and SUVs as well as bigger sedans were slapped with a cess of 4 per cent on the value of the car.

These are over and above a cess of 1 per cent on petrol/ LPG/CNG driven vehicles of length not exceeding 4 meter and engine capacity not exceeding 1,200cc.

Finance Minister Arun Jaitley also proposed to collect tax at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs 10 lakh.