Honda Cars India Ltd. announced that it will be hiking prices across its range of models from April onwards, in order to counterbalance increasing input costs and operational expenses.
Despite the efforts made to absorb the input costs, the price revision became "unavoidable", according to Honda Cars India Vice President (Marketing and Sales) Kunal Behl.
"The price hike will vary by model and variant and will apply to all Honda models, including Amaze, City, City e:HEV, and Elevate," he said in a statement.
Honda, however, has not yet clarified on what the new prices will be after the price revision.
Maruti Suzuki India, Kia India and Tata Motors were some other Indian automobile companies that have announced price hikes for similar reasons.
According to S&P Global, the recent surge in raw material costs can be attributed to global supply chain disruptions and rising demand. These disruptions, combined with increasing demand, have put pressure on prices, impacting industries around the globe.
Another factor to consider is the reciprocal tariff policy threatened by US President Donald Trump, which is a part of his administration's 'America-first' approach towards world trade.
Under this policy, Trump's administration has stipulated the deadline of April 2 for countries to revise their tariff policies to reflect its expectations, after which the US would issue a "reciprocal tariff number".
US Treasury Secretary Scott Bessent, while recently speaking to Fox Business, said that countries could negotiate to avoid what he called a "tariff wall".
(With Inputs From PTI)
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