The prices of petrol version of the compact sedan have been increased in the range of Rs 19,000-Rs 23,000 while diesel powered models would get expensive by Rs 23,000- Rs 26,000, the company said.

Also read: Honda Cars sales surge nearly three-fold in December

Honda's flagship mid-sized sedan City will be dearer by up to Rs 48,000. The prices of petrol variants of the car have gone up by Rs 33,000 to Rs 46,000, while the diesel variants have become expensive in the range of Rs 37,000 to Rs 48,000. 

The model is now priced between Rs 7.53 lakh and Rs 11.53 lakh. The company has also hiked the price of its premium sports utility vehicle CR-V by 60,000 and will now be available between Rs 20.85 lakh and Rs 24.96 lakh. An official of Honda Cars India said the company is still working on the quantum of price hike for its multi purpose vehicle Mobilio.

The move follows the government not extending excise duty concessions given to the auto industry and consumer durables sectors after the expiry on December 31, 2014. The government had extended the excise duty concessions by 6 months in June continuing the previous UPA government's decision to cut excise duty on cars, SUVs, two-wheelers and consumer durables in the interim Budget in February, 2014. 

The excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8 percent from 12 percent previously. For SUVs, it was cut to 24 percent from 30 percent; for mid-sized cars, to 20 percent from 24 percent and to 24 percent for large cars, from 27 percent.