Honda Siel Car India has hiked prices of its 'City' and 'Accord' models following the announcement of a 2 per cent cess on all the major tax heads for education.

The 'City EXi' would now cost Rs 6.47 lakh (ex-showroom, Delhi) instead of Rs 6.25 lakh earlier, company sources said.

The other 'City' model which used to sport a price tag of Rs 6.97 lakh will be priced at Rs 7.2 lakh.

The 'Accord' with manual transmission will be priced at Rs 14.79 lakh from Rs 14.69 lakh while the car with automatic transmission has been priced at Rs 15.50 lakh from Rs 15.15 lakh earlier.

The hike in prices follow the education cess announced by Finance Minister P Chidambaram in the Union Budget.

India's largest car maker Maruti Udyog hiked the price on July 8 while second biggest car maker Hyundai Motor India will take a call on prices by the month end.

General Motors India has also said it would jack up the price which will be to the tune of two per cent by the end of July while utility vehicle maker Mahindra and Mahindra has also joined the bandwagon.