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Honda to up prices from 1 April; Ford, GM may follow soon

Honda to up prices from 1 April; Ford, GM may follow soon
PTI
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First Published: Mon, Mar 14 2011. 07 10 PM IST
Updated: Mon, Mar 14 2011. 07 10 PM IST
Mumbai: Leading car-makers, worried by rising input costs are expected to take a call on whether to hike their product prices by end-this month, even as Honda Siel Cars India on Monday said that it would up its prices by 2-3% from 1 April.
The Japanese multi-national said it would hike the prices of all its products, except the luxury sedan Accord, by 2-3% beginning 1 April on account of rising input costs.
Other car-makers, also impacted by the continuous rise in raw material prices, said they are mulling a price hike but would take a call on the matter by end-this month.
Ford India said that increasing input costs in recent months is worrying the company.
“Surging raw material costs is worrying us and it is now the biggest concern for almost all auto-majors in the country,” Ford India’s president and managing director, Michael Boneham, told the news agency here.
“We have not decided anything yet (on hiking its car prices)... we will review the situation by end-this month,” he said.
Ford has invested $500 million at its Chennai facility, doubling car production to 2 lakh units annually and to build a new engine with a capacity of 2.5 lakh units per year.
Ford looks at India as a car hub, he said, adding its Figo will be manufactured only in India.
“India will be the small car hub for Ford...it will (also) be the sole producer of Figo in the world,” Boneham said.
Another leading car-maker, General Motors India, could also be pushed to hike its products’ prices if raw materials costs continue to increase.
“We will review the situation (cost of raw materials) and will take a call (on price hike) by end-this month,” General Motors India’s vice-president, P. Balendran, said.
If the company hikes its prices, it will be for the second time this year. Earlier in January, it had hiked its prices by 2%.
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First Published: Mon, Mar 14 2011. 07 10 PM IST
More Topics: Car | Prices | Auto | Honda | Ford |