Amidst the increasing competition in the segment of midsize sedan segment, the Indian unit of Japanese car maker Honda has slashed the price of its volume driving Honda City sedan by as much as Rs 66,000. In past few months, new entrants like Volkswagens Vento have left behind the former segment leader Honda City in terms of sales. The decision has been taken in a bid to enable the City sedan to compete more promptly with its competitors.
The Honda City EMT variant will now be available at Rs 7.49 lakh (ex showroom Delhi), about Rs 66,000 less than the previous price tag of Rs 8.15 lakh. On the other hand, the top end variant of the car - City VAT – will now be available at Rs 9,89,100, about Rs 44,000 lesser than the previous price tag.
As per the company, the company was able to cut the price because of successful implementation of various cost-reduction measures which company initiated about two years back. "It all began with market feedback that the prices have gone very high," it said.
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."
