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Old 26th June 2011, 12:42   #331
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Quote:
Originally Posted by VTEC_Love
I got this information from a senior person at my Honda's dealership:

Honda is currently testing a diesel engine for its Accord and CRV. I asked him how long will the launch take? The reply was - "A couple of Years!"
Honda already has a 2.2L diesel engine in their range which would be perfect in an Accord or CRV. Why are they delaying it by 2-3 years is anybody's guess. Their earlier comment was that the diesel quality in India is poor and hence they can't launch a diesel car here.
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Old 26th June 2011, 15:23   #332
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by fuel_addict View Post
Honda already has a 2.2L diesel engine in their range which would be perfect in an Accord or CRV. Why are they delaying it by 2-3 years is anybody's guess. Their earlier comment was that the diesel quality in India is poor and hence they can't launch a diesel car here.
Tuning the engine for our conditions, then testing it sufficiently is in itself a time-consuming process.

After that, there is homologation which is costly and time-taking.

Regards,
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Old 26th June 2011, 16:39   #333
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Quote:
Originally Posted by fuel_addict View Post
Honda already has a 2.2L diesel engine in their range which would be perfect in an Accord or CRV. Why are they delaying it by 2-3 years is anybody's guess. Their earlier comment was that the diesel quality in India is poor and hence they can't launch a diesel car here.
Yes, thats the only diesel they have. It dates back to 2004 i.e. the year of its introduction. Another version which is slightly less than 2204 cc diesel engine is also there which was its stroke reduced for bringing it below 2.2 ltrs.

The spyshots of CRV with diesel engine ( or atleast the badging ) have surfaced long back. Honda is paying the price for not bringing in the diesel. Just imagine what sales Accord would be doing with a diesel heart. This new generation was an opportunity lost for Honda. Honda should have introduced the diesel option for the current from day 1 of its sales in India. I am sure that Skoda and other would not have such a good run.

I would again say that Honda should go to Mitsubishi for diesel units. Mitsubishi has new range of diesel engines which can be good enough for Honda. The 1.8 from Mitsubishi would do wonders for Civic if not city. If they manage to fit it into city and price it well, they have winner on hands. SX4 D, Vento D, Verna D, Fiesta D, all will suffer. The 2.2 ( even their current ones ) can help Honda rejoin competition with a bang.

Last edited by aaggoswami : 26th June 2011 at 16:48.
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Old 11th July 2011, 21:56   #334
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

Just in..

Honda Cuts prices on the Jazz by 1.75 Lacs

Base model - 5, 87, 500/-

Select Model - 5, 99, 000/-

X Model - 6, 31, 000/-

Can anyone please confirm?

Cheers!
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Old 12th July 2011, 08:15   #335
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

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Originally Posted by crackparag View Post
Just in..

Honda Cuts prices on the Jazz by 1.75 Lacs

Base model - 5, 87, 500/-

Select Model - 5, 99, 000/-

X Model - 6, 31, 000/-

Can anyone please confirm?

Cheers!
seems like a few have confirmed on the new car price check thread. But i had heard from my SR that the X model is going to be discontinued.
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Old 12th July 2011, 10:59   #336
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Default Re: Honda India slashes the City's price by Rs. 44,000 - 66,000!

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Originally Posted by mdsaab View Post
seems like a few have confirmed on the new car price check thread. But i had heard from my SR that the X model is going to be discontinued.
I have updated the otehr threads discussing the topic.

I called Crystal Honda who will be able to confirm only later today. The website has not been updated yet.
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Old 16th July 2011, 09:27   #337
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Default Honda increases localisation levels! Top official speaks!

Honda, over the past month, has made some surprising moves.

The brand, which otherwise commands a premium, sharply reduced the prices of its bestselling City and the premium hatchback Jazz. On June 14, the carmaker announced ‘new prices’ for the City, slashing the price tag by Rs 44,000 for the top-end version to Rs 66,000 on the entry level one.

The growing sales of new rivals like the VW Vento and Hyundai’s new Verna have clearly driven this uncharacteristic move on Honda’s part. But the Japanese carmaker says that the price revision is due to the increased localisation level in the City.

According to Jnaneswar Sen, senior vice-president – Sales and Marketing, Honda Siel Cars India, “Our R&D function in India started working on localisation and cost down activities for our volume models from 2009. In anticipation of bigger volumes resulting in economies of scale from the second half of the current year, we have achieved considerable cost reduction and are happy to pass on the benefit to the customers with immediate effect."

An industry source said that with the development of a local vendor base for the Brio, Honda has managed to increase local content for the City too.


Honda’s decision to revise the City’s prices comes within months of the car losing the top slot in the segment to Volkswagen’s Vento. The German competitor, thanks to the option of a diesel variant, sold 15,098 units as against 14,870 units of the City during the January to May period.

The absence of a diesel variant and the reduction in production level due to the earthquake in Japan has also hit Honda hard.

The Jazz, which has been a slow starter so far, is also a beneficiary from Honda’s latest retail strategy. Honda sold sold 1,413 units during January to May, as against 1,837 units during the same period last year. The Jazz’s price has been cut by around Rs 150,000 under a ‘limited period’ offer.

Unlike the City, this is not a ‘new price’ but a sales scheme. Dealers say the strategy has worked well. “Almost all the cars we had with us have been sold off, thanks to the offer,” says a Mumbai-based dealer.

With these unprecedented price cuts by Honda, could there be an adverse impact in the Japanese major’s brand equity? “Perhaps not,” says a leading brand consultant. “The brand equity remains intact if the price cut is to counter a strong competitor and without any compromise on quality.”

Well, with Volkswagen and Hyundai as competitors, Honda’s price-cutting move may not dilute its brand equity. Instead, it has definitely brought in more customers to its showrooms.


SOURCE - Autocar India (Honda rejigs pricing strategy | Autocar India)

Last edited by RavenAvi : 16th July 2011 at 09:29.
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Old 16th July 2011, 15:08   #338
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Default Re: Honda increases localisation levels! Top official speaks!

"More quality,more value for money-less opportunism." This is a winning mantra in long run. Honda added huge premiums to the brand image.People tolerated. When competition came, people feel liberated-more choice. Honda learns the lesson in hard way-and slashes the prices. This is a natural process. This will keep cycling. Honda is just an example.
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Old 16th July 2011, 16:37   #339
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Default Re: Honda increases localisation levels! Top official speaks!

So now what happened to their earlier "Supply Chain Management has been improved.. blah blah blah... Thus prices have been reduced" Story? Stop kidding Honda, we all know the obvious reason!
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Old 16th July 2011, 16:44   #340
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Default Re: Honda increases localisation levels! Top official speaks!

Whatever be the reason for the decrease in prices - competition or localization, it has surely worked well.

What is/will go in Honda's favour is it's brand value. The day we start seeing cheap plastics in a Honda or lack of safety features like ABS, Airbags in "lower" variants, everyone will realize that Honda is cutting costs and that it is not a premium anymore.

The day the "premium" is gone, people will flock to other brands/products.

So Honda, as long as you're giving us a good product, call it whatever you want - localization, competition, market correction.
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Old 16th July 2011, 22:31   #341
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Default Re: Honda increases localisation levels! Top official speaks!

The article from Honda is funny.

Quote:
Originally Posted by libranof1987 View Post
The day we start seeing cheap plastics in a Honda or lack of safety features like ABS, Airbags in "lower" variants, everyone will realize that Honda is cutting costs and that it is not a premium anymore.
Dude,

Serious? Time to flashback 2-3 years, eh? kya baat karte ho yaar. That's not how Honda was!
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Old 16th July 2011, 22:48   #342
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Default Re: Honda increases localisation levels! Top official speaks!

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Originally Posted by RavenAvi View Post
According to Jnaneswar Sen, senior vice-president – Sales and Marketing, Honda Siel Cars India, “Our R&D function in India started working on localisation and cost down activities for our volume models from 2009. In anticipation of bigger volumes resulting in economies of scale from the second half of the current year, we have achieved considerable cost reduction and are happy to pass on the benefit to the customers with immediate effect."
What others did within 0 - 2yrs of entering India, Honda took 10+ yrs ? Fact is 90% of car buying public will believe this, but the remaining 10% associated with Team-BHP and other knowledgeable customers will laugh at this statement. Better late than never! Competition is really a good thing - not only for customers also in terms of bringing back high flying management executives to ground reality.
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Old 16th July 2011, 23:11   #343
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Default Re: Honda increases localisation levels! Top official speaks!

This, rather is only a solace seeking explanation to camouflage the real reason for the price cuts, the competition breathing down Honda's spine and the sagging sales. True, high localization content is essential to get volumes for the upcoming Brio, or else it also would follow the Jazz path.

Last edited by rajeev k : 16th July 2011 at 23:12.
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Old 16th July 2011, 23:17   #344
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Default Re: Honda increases localisation levels! Top official speaks!

Quote:
Originally Posted by phamilyman View Post
Dude,

Serious? Time to flashback 2-3 years, eh? kya baat karte ho yaar. That's not how Honda was!
I didn't understand what you're trying to say.
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Old 17th July 2011, 00:26   #345
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Default Re: Honda increases localisation levels! Top official speaks!

This is a habit of Honda(HSCI) i.e: to introduce their products first with Stratospheric price tags & then slashing them drastically. The biggest example of this is of Honda Civic Hybrid which was launched with price tag of 23 lacs INR which is slashed to 13-14 lacs at last to clear the stocks.
Almost similar happened with Jazz now, Over-optimistic pricing initially & massive discounts at the end.
Hope they don't repeat such kind of mistakes with their Cute hatchback-Brio.
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