Struggling with the impact devaluation of rupee on its business, the Honda Siel Cars India, Limited (HSCI) is looking to hike Honda CR-V prices in India. The HSCI has disclosed that the Honda CR-V prices could be increased by 30 percent in India. The HSCI is joint venture between the Honda Motor Company Limited, Japan and Siel Limited, a Siddharth Shriram Group company.  

Compact crossover SUV, Honda CR-V is one of the finest cars in India, having not many rivals in its category. The company produces Honda CR-V in all-wheel drive as well as front-wheel drive. However, in the UK and Australia markets only all-wheel drive version of Honda CR-V is released.         

According to HSCI, the price hike is imminent because of the depreciation of value of Indian rupee, which is impacting the business.

“Devaluation of rupee is impacting our business, because a significant portion of our components are imported from Japan and Thailand. This impact is about 30-35 per cent in case of CR-V,” said Masahiro Takedagawa President and VEO of Honda Siel Cars India.

Meanwhile, Honda has halted work on its second plant in India. Honda has indefinitely stopped work on its Rs1,000 crore second plant in India because of slump in the auto market in India. The company has booted axed the services of about 1,000 temporary workers working on the plant.

The hike Honda CR-V prices is certainly disappointing news for Honda CR-V fans in India. However, there is good news for small car customers. The HSCI is looking to enter the small car market of India, by launching its latest hatchback model Jazz, which is also known as Fit in certain markets. Jazz, a new 1.2 litre engine car, priced at Rs 5.5 lakh, will be released in the Indian market in June. Jazz will compete with Skoda Fabia, Tata Indigo, Ford Fusion, Hyundai Accent, and upcoming Maruti Ritz.