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Old 15th June 2011, 13:52   #166
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

I don't like the way Honda is hiding the real reason and using statements like "We managed to increse the efficiency of our supply chain and thus managed to cut the cost", "We are happy to pass on the benefits to the customers", "We began this operation back in 2009"
Face it Honda! And we all know that Vento and Verna are killing the only car that is selling for you currently! You are fooling no one with your comments!
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Old 15th June 2011, 13:54   #167
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by muni View Post
Has anybody got the On road quote before with same parameters of model+Insurance+accessories and Now to know the actual difference. A breakup side by side would be helpful.
Please look back at the calculation from a couple of posts above.

A sharp-eyed customer would see a difference of only ~2k INR because of lower insurance premium. Such a customer would've taken the dealer to task and gotten back the reduction in road tax caused by the dealer slapping on discounts to the ex-showroom price.

A not-so-sharp-eyed customer would see a bigger difference now because the original road tax amount quoted in the brochures would already have been calculated taking the discount into account. Assuming 50k and 12% road tax (AP, ex-showroom price < 10 lac), it would amount to 6k. So the total reduction in road-tax and insurance would be ~8k.

Now add back the cost of the extended warranty, Honda Roadside Assistance and any other freebies which dealers were giving earlier but not giving now.

These would overshadow the 8k savings, leave alone the 2k savings a sharp-eyed customer would see.

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Old 15th June 2011, 14:04   #168
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by aravind.anand View Post
I don't like the way Honda is hiding the real reason and using statements like "We managed to increse the efficiency of our supply chain and thus managed to cut the cost", "We are happy to pass on the benefits to the customers", "We began this operation back in 2009"
Face it Honda! And we all know that Vento and Verna are killing the only car that is selling for you currently! You are fooling no one with your comments!
What did you want them to say " Sorry, we couldn't over-charge you any longer so had to cut costs" ? Truth but a PR disaster. They still want to do business here.

Quote:
Originally Posted by swiftnfurious View Post
Who doesn't take profits when they have a good time? Swift D are enjoying good profits and there is not a single Re discount still. VW hiked the price of Vento D alone by 22,000/- recently. So why we have a blame on Honda alone ?

I would say its upto the other manufacturers and customers to take advantage of such situation. Honda lost the game because they gave so much space for others to place their products with decent margins and still look better than Honda at those price points. Now they themselves are feeling the pinch that they reduced such huge amounts.


There was a time (2 decades ago) when Maruti 800 had a long waiting list and dealers used to charge premium of upto 30K to deliver it in a week. Had it not been for the 50% increase in petrol price in the last 8-10 months, ANHC would still have been flying off the shelf and there wouldn't have been any price cut.
And I can bet if we were to see the petrol sales only, City would still have a huge lead over any other manufacturer (featureless or not).
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Old 15th June 2011, 14:20   #169
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by asr245 View Post
What did you want them to say " Sorry, we couldn't over-charge you any longer so had to cut costs" ? Truth but a PR disaster. They still want to do business here.
Though you were mocking me, I really enjoyed sense of humor in that comment I actually din't want them to say anything like that, because it makes them look very silly as we all know the real reason behind this price cut. They had no option left I would say.
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Old 15th June 2011, 14:24   #170
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

@spadix: The quote wasn't detailed enough to make it clear.


Anyway, I have got a friend of mine to share the detailed quote of the City VMT he bought about a month Back in Bangalore. I Wonder what is the present break up.

________________________________________
Ex-Showroom Bangalore price - 9,34,500
Life Time Tax + Other Taxes - 1,44,500
Insurance - 27,000
Registration - 7,000
Start-up kit - 3,000
________________________________________
Total Cost of the Car 11,16,000
________________________________________

Following freebies got
____________________________
Insurance - 27,000
Corporate Discount - 15,000
Didnít Buy S-Kit - 3,000
____________________________
Total Discount - 45,000
____________________________

Total Cost of the Car - 11,16,000
Total Discount - 45,000
______________________________
Final Cost - 10,71,000
______________________________
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Old 15th June 2011, 14:26   #171
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by asr245 View Post
What did you want them to say " Sorry, we couldn't over-charge you any longer so had to cut costs" ? Truth but a PR disaster. They still want to do business here.


On a serious note, after the real time info has started flowing in, things don't look so exciting from end user perspective. The coin is the same, Honda has just flipped the side. So the value remains the same, the picture is different.

I personally am more interested to know the cuts on the Jazz. They have to be substantial to make any good numbers on sales charts. Take a case of Figo and learn from that. Figo even made Tata looked stupid who were known for VFM since so many years. I agree Jazz is not a VFM product, but if you want to sell and get good numbers, you better price it sanely. Honda should price it somewhere between 5.5 to 6.75 range and Jazz looks like a dream-come-true hatch at this price. Only deterrent factor would be the petrol vs diesel war.

A Jazz X at a price of around 7 lacs (most premium hatch's top-end petrol variants wander around this price tag) on road will be simply mouth watering and would surely sell twice the current numbers at least IMHO.

Last edited by tsk1979 : 15th June 2011 at 15:33. Reason: excess smileys
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Old 15th June 2011, 14:29   #172
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Oh my God!!! I was telling my dad about the 6.99% interest rate on the petrol HL vento. (We are thinking of buying a Verna Diesel), and then I see this! My, my!

We had seriously thought of buying a Jazz 10 months ago, and boy! Am I glad my dad called it off!
So now, as per the Honda site:
Ex-Showroom Price of Jazz (Base): 7.4 lakh while Ex-Showroom Price of City (E): 7.6 lakh!!!!!!!
For 20k, you get the sedan version, that's nearly 2 segments higher, with a 1.5 engine, and nearly the same features minus the Audio!
Sure, you might get free insurance and around 20k discount with the Jazz, but 60k isn't that big a price, for a CITY!!!
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Old 15th June 2011, 14:32   #173
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by Arkin evoisrevo View Post
Oh my God!!! I was telling my dad about the 6.99% interest rate on the petrol HL vento. (We are thinking of buying a Verna Diesel), and then I see this! My, my!

We had seriously thought of buying a Jazz 10 months ago, and boy! Am I glad my dad called it off!
So now, as per the Honda site:
Ex-Showroom Price of Jazz (Base): 7.4 lakh while Ex-Showroom Price of City (E): 7.6 lakh!!!!!!!
For 20k, you get the sedan version, that's nearly 2 segments higher, with a 1.5 engine, and nearly the same features minus the Audio!
Sure, you might get free insurance and around 20k discount with the Jazz,
but 60k isn't that big a price, for a CITY!!!
Dear Arkin evoisrevo

If you have read GTO's 2nd post in this thread, it clearly mentions in bold that Jazz price cut is also confirmed. So this Jazz Base @ 7.4 vs City E @ 7.6 will not hold for long. It will look much more sane soon. Just wait and watch.
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Old 15th June 2011, 14:41   #174
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Here are the new OTR prices Pune.

sorry i have only the AT variants.

V AT Non leather 10,60,000/- OTR
V AT Leather 11,13,000/- OTR

The previous prices were approx

V AT Non Leather 11,22,000/- OTR
V AT Leather 11,72,000/- OTR

Corporate Discounts / Scheme available
Nothing else ~ not even Honda Loyalty Bonus.

Looks like Honda with the recent price revision has even thrown customer loyalty out the window.
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Old 15th June 2011, 14:58   #175
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by GTO View Post
Brilliant because once you swallow a bitter pill, the second and third are easier to gulp down. Wait & watch on the Jazz' repositioning, and that for the next generation Civic.
Very well said. We maybe are seeing a start of Honda revival here Ė that too, a pretty fast one! And they have a chance to excel in what they are good at i.e.; sweet petrol engine cars.

Quote:
Originally Posted by Abhi_Automobile View Post
I completely disagree with your views here. I think the Jazz is overpriced by 1.5 lakhs (at least 1 lakh) and unless they slash the prices by a considerable margin (1 lakh at least), the car will not move off the shelves.
I still you bought a good car and it should be your proud possession. But, it grossly overpriced.
Some price correction on the Jazz is welcome. That should help, considering our affinity for cheap hatchbacks. But I hope that is not in the expense of stripping out features. I personally will be happy if they bring in the 1.5 Jazz at the current pricing of 1.2 (or even slightly more). And I know that I will be a part of minority here

Quote:
Originally Posted by Abhi_Automobile View Post
Exactly my thoughts. 1 lakh reduction in price as it is. Another 50k for removal of airbags and ABS. The base model need not have it. 5.5 ex showroom is what suits this car (6 at max)
Quote:
Originally Posted by Bluengel180 View Post
The people buying the base variant have no need for safety?
Completely agree. Is it that youíre entitled to safe motoring only if you have money to pay the extra premium?
I hope Honda stick to its policy here to provide basic safety features across all variants. Quality is something which is so well associated with Honda cars, and thatís what separates them from the immediate Asian competition. I hope they not succumb to the pressure of bringing in a stripped down Jazz to cut cost.
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Old 15th June 2011, 16:16   #176
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Looks like the competetion is heating up. Good for the buyer. I belive Honda should think about diesel vehicles fast to have more market cap.

On the other hand, with New Verna and Vento hitting the road, there is already a slow down for SX4. Next, Maruthi should change their strategy on how to place SX4 in the market with the competetion. They have very few variant options and less advanced features.
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Old 15th June 2011, 17:35   #177
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Quote:
Originally Posted by muni View Post
Lot of contradictory things being discussed on the prices. We need someone to actually go to the Showroom and check what the On road price was before( after the discounts and after the price reduction ( with discounts if any) with the obvious break ups of the discounts got. It would put to rest all the speculation. Wouldnt insurance premium also reduce since the car has been priced less along with the road taxes.

a) Ex Showroom Before ( any discount on this)
b) Insurance
c) Freebies
d) Other Taxes if Any

Does that mean that the manufacturer was giving this price discount to the dealer for point a) Ex showroom before. I assume that they do have a percentage of the insurance premium to gain from.
Depends, Take EMT

It was 9,87,000 on-road in Bangalore (after free insurance) it is now 9,10,000 on-road (including insurance). Direct savings of Rs 77,000.

However you don't get:

No roadside assistance
No extended 2 year warranty (customers will have to purchase extended warranty)
No discounts or free accessories
No loyalty bonus

Corporate discount is however still applicable

For SMT the savings will still be better than before but not that high. I don't have the exact numbers.

Quote:
Originally Posted by Arkin evoisrevo View Post
Oh my God!!! I was telling my dad about the 6.99% interest rate on the petrol HL vento.
Is it on reducing balance method? what are the caveats?

Honda was similarly offering 6.5 lakhs at 6.99% on ANHC but it was not on reducing balance and in the end the savings were same as that of free insurance + accessories (buyers had to choose either free insurance + accessories or 6.99% loan)

Last edited by aah78 : 15th June 2011 at 19:52. Reason: Posts merged.
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Old 15th June 2011, 17:52   #178
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by EssYouWe View Post
They just pulled in a part of the discount into the ex-showroom price and pulled the discount off completely.
There's three differences to a price correction:

a) Previously, it was the dealer who was offering the discount. This time, it's the manufacturer whose margins are cut.

b) ALL customers get the new price. This is unlike dealer discounts that really depend on your bargaining skills. Most cars are still sold today at MRP.

c) Dealer discounts will follow soon . Not to the earlier 50K level as earlier, but expect some aggressive dealers to throw in freebies (including insurance) soon.
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Old 15th June 2011, 18:05   #179
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by GTO View Post
c) Dealer discounts will follow soon . Not to the earlier 50K level as earlier, but expect some aggressive dealers to throw in freebies (including insurance) soon.
Exactly - the market will define this, and whether its the City or the likes of Verna/Vento that needs to discount OR all of them need to discount!!!

As consumers, we are in for better times! And if fuel prices retard.......

Last edited by Equus : 15th June 2011 at 18:08.
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Old 15th June 2011, 18:07   #180
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by GTO View Post
There's three differences to a price correction:

a) Previously, it was the dealer who was offering the discount. This time, it's the manufacturer whose margins are cut.

b) ALL customers get the new price. This is unlike dealer discounts that really depend on your bargaining skills. Most cars are still sold today at MRP.

c) Dealer discounts will follow soon . Not to the earlier 50K level as earlier, but expect some aggressive dealers to throw in freebies (including insurance) soon.

This will also mean all second hand Hondas will now sell cheaper (City because it is cheaper now, and others because people expect Honda to cut prices )

My next car will be a used Honda !
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