Honda has announced a huge price cut for the Honda City car today with effect from 14th June. The price cut ranges from Rs 44,000 all the way up to Rs 66,000. Car prices seldom go downwards and when you have Japanese automaker Honda in the question, it never does any discounts on its products and has always priced its cars a tad bit higher than its competition due to the quality premium associated with the Honda brand. Since the competition in this space has got quite intense, with the Honda City now more cost effective, it will be interesting to how it changes buyer’s decision in making a car purchase.
Other manufacturers in the C-Segment like Volkswagen Vento, Maruti SX4 Diesel and the Hyundai Verna Fluidic. With Ford announcing the 2011 Fiesta, things were set to get worse. Why worse? Because the Honda City is the only car in this segment which doesn’t have a diesel variant. The company had no option but to revise the prices on all its variants.
2011 Honda City Revised Prices (Ex-showroom price, Delhi) –
One interesting fact is that the fully loaded variants have received least price cut since it is targeted at the more elite customers who can pay the price for the extra gadgetry and equipment.
“Our R&D function in India (HRAP-I) started working on localization and cost down activities for our volume models from year 2009. In anticipation of bigger volumes resulting in economies of scale from the second half of current year, we have achieved considerable cost reduction and are happy to pass on the benefit to the customers with immediate effect. The Honda City would now start from Rs. 7.49 lakhs (ex showroom Delhi),” Mr. Jnaneswar Sen, Sr. VP – Sales and Marketing, Honda India, said.
Honda City prices dropped!!!!