Here’s the Expected Increase in Honda’s Car Prices Due to Mini-Budget
Honda Atlas Cars Limited (HACL) had been struggling to keep its market share intact in the first few quarters of 2021 due to an increase in competition. However, its sales jumped back up after the launch of the 6th generation City.
The new model — although still a generation old compared to the international market — is an improvement over the previous model that lacked safety features. Resultantly, HACL’s sales have gone up considerably despite a massive price hike that the company announced in November 2021.
Unfortunately, with another wave of price hikes initiated by the controversial mini-budget, HACL is likely gearing up for a grand announcement of its own. Adjusted for the new Federal Excise Duty (FED) and sales tax rates, the new prices of locally assembled Honda vehicles are likely to be as follows:
|Models||Current Prices (Rs.)||New Prices (Rs.)||Price Increase (Rs.)||% Increase|
|City 1.2L MT||2,729,000||2,729,000||–||0.0%|
|City 1.2L CVT||2,949,000||2,949,000||–||0.0%|
|City 1.5L CVT||3,069,000||3,143,854||74,854||2.4%|
|1.5 L Aspire MT||3,199,000||3,277,024||78,024||2.4%|
|1.5 L Aspire CVT||3,369,000||3,451,171||82,171||2.4%|
|Civic 1.8 iVTEC||3,979,000||4,074,496||95,496||2.4%|
|Civic 1.8 iVTEC Oriel||4,259,000||4,361,216||102,216||2.4%|
|Civic 1.5 RS Turbo||5,049,000||5,172,146||123,146||2.4%|
|BR-V 1.5 iVTEC S||3,599,000||3,685,376||86,376||2.4%|
It bears mentioning that the FED and sales tax has not been revised for vehicles with engine displacement between 1001cc and 1300cc. As can be seen in the table, the 1.2-liter variant City is at an advantage as it has a 1250cc engine displacement, making it the only car in its class that is not likely to experience a price
Other cars in the HACL lineup are likely to observe an increase in price. However, their demand is likely to remain unhindered due to strong brand and resale value, as well as the strong purchasing power of its target market