Honda City gets cheaper by Rs66,000

Amidst the increasing competition in the midsize sedan segment, the Indian unit of Japanese car maker Honda has cut the price of its volume driving Honda City sedan by as much as Rs66,000. The Honda City has been left behind over the past few months, in terms of sales by entrants like Volkswagens Vento. The decision comes as the company attempts to give the City sedan scope to compete with its rivals.
 
The Honda City EMT variant would be available at Rs7.49 lakh (ex showroom Delhi) which is around Rs66,000 less than the previous price tag of Rs8.15 lakh. The top end variant of the car- City VAT, on the other hand would now be available at Rs9,89,100, about which is Rs44,000 lesser than the previous price tag.
 
The move comes with the successful implementation of various cost-reduction measures, which the company initiated about two years back. It said it all started with market feedback that the prices had gone very high.
 
In a recent statement, Honda Siel Cars senior vice president (sales and marketing) Jnaneshwar Sen said, "In anticipation of bigger volumes resulting in economies of scale from the second half of current year, we have achieved considerable cost reduction and have passed on the benefit to customers."

Meanwhile analysts are wondering whether the Honda Jazz would be similarly see a price drop. The car has been a poor seller with an offtake of only a fraction of the 2,000 units a month of the targeted sales when it launched a couple of years ago.

They say the Honda Jazz is a great car but its high price was a big let down and a price cut could turn things around for the car.