Expected Increase in Honda’s Car Prices Amid Mini-Budget 2022

Due to increased competition, Honda Atlas Cars Limited (HACL) has struggled to maintain its market share in the first few quarters of 2021. However, after the release of the 6th generation City, its sales increased again.

Although it is still a generation old in comparison to the international market, the new model is an improvement over the previous model, which lacked safety measures. As a result, despite a substantial price increase announced by the firm in November 2021, HACL’s sales have increased significantly.

Unfortunately, with another round of price increases triggered by the contentious mini-budget, HACL is poised to make its own big announcement. The new prices of locally built Honda automobiles, after adjusting for the new Federal Excise Duty (FED) and sales tax rates, are projected to be as follows:

It is worth noting that the FED and sales tax have not been updated for automobiles with engine displacements ranging from 1001cc to 1300cc. As seen in the table, the 1.2-liter City model has an advantage because it has a 1250cc engine displacement, making it the only car in its class that is unlikely to receive a price hike.

Other vehicles in the HACL portfolio are likely to see price increases. However, their demand is anticipated to remain unaffected due to its strong brand and resale value, as well as the target market’s high purchasing power.