NEW DELHI: Japanese car major Honda on Tuesday said it expects sales to pick up during the festive season as consumers are expected to loosen their purse strings after prolonged purchase postponements due to high interest rates.
"High interest rates to an extent have impacted our sales. But demand is likely to pick up during the festive season as we expect consumers who had postponed purchases to start buying," Honda Siel Cars India Chief Executive Officer and President Masahiro Takedagawa told reporters here.
Keeping the festive season in mind, the company today launched refurbished versions of its sedan 'City' coinciding with the company's 10th anniversary in India, priced between Rs 6.80 lakh and Rs 8.65 lakh (ex-showroom Delhi).
Except for the top-end 'Vtec', rest of the three variants, which are loaded with extra features, would be costlier by Rs 3,000 from the existing ones.
Asked if the high pricing of the new City would put it at a disadvantage against competition from Maruti Udyog's SX4, he said: "Competition is always welcome as it expands the market and is good for consumers. But our customers are different, they are smart to make their own choices."
HSCI had witnessed a 12.82 per cent sales decline in August at 4,469 units as against 5,126 units in the same month a year ago. Takedagawa said the company's production was hit by the on going expansion at its greater Noida facility. Honda Siel India would also be shutting the plant for ten days in November.
The company is expanding its production capacity to one lakh units per annum from the present 60,000 units.
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