Honda plans to further raise the prices of its best selling model City by further Rs. 10,000. The company had recently increased prices in range of Rs. 5,000 to Rs. 10,500 following excise duty hike in Budget.
“Last week, we had passed on the impact of excise duty hike partially to our City customers as it was a big amount. However, as we do not have any other option, we are passing on the rest,” Honda Siel Cars India (HSCI) Senior Vice President (Sales and Marketing) Jnaneswar Sen said.
Following that announcement, the City was priced between Rs 7.1 lakh and Rs 10.33 lakh (ex-showroom Delhi). “With the full implementation of the duty hike, the City prices will further go up by Rs 8,000 to Rs 10,000 depending on variants from April 1,” Sen said.
In the Budget, Finance Minister Pranab Mukherjee raised excise duty to 12 per cent from 10 per cent at present.
Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres were increased to 24 per cent from the earlier 22 per cent with a fixed duty of Rs 15,000.
If company plans to increase 10,000 through the base model will then start at Rs. 719,500 and the top model will be priced at Rs. 1,043,000.
So hurry up to buy your City before Honda steps up the prices or you can just visit other dealers to see similar options.