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Old 12th July 2011, 08:23   #91
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

When I bought my pre-owned Jazz in Dec 2010, I expected a big price cut sooner or later & I knew it would hit my car value, but, I didnt expect such big price cut. I hope Honda throws some freebies for existing Jazz owners, without that, they will have a lot of unhappy old customers.
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Old 12th July 2011, 08:26   #92
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Quote:
Originally Posted by swapnil.rahate View Post
Post on Honda Facebook page:

Guys Why so Serious huh ? So do you people like our surprise of Today ? We have now cut down price of our Production Model Jazz by Rs.1,75,000 and soon we will bring in the 1.5L i-Vtec 118 Bhp Petrol Engine in it.

-Team HSIL-
A-ha. NOW this furore-creating price cut suddenly starts to make sense.

1.5L iVTEC with 118 BHP? Weehaw! Driving enthusiasts, take note.

I think this will enter the previous price band of the Jazz, at maybe lower rates than the older prices (starting at around 6.9L maybe).

Since the ASM mentioned that the Jazz will come with only 2 variants from now, I suspect the facelifted Jazzes will be a base 1.5 model and a Select 1.5 model. And it should come after the launch of the Brio, so expecting around November-December. Maybe it will be a twin launch with the facelifted City.

And what about the 1.2 iVTEC which powers the current Jazz, you ask...

Quote:
Originally Posted by ampere View Post
Is there any differentiation planned by Honda between the engine capacities of Brio and Jazz?
That question is the answer in itself. I think Honda is planning to keep the 1.2 iVTEC as exclusive to the Brio.


As regards the queries as to how they could offer the Jazz with the same features at this new price, my telephonic talk with the ASM yesterday revealed that after the Tsunami disaster which hit Japan, Honda started producing (and possibly sourcing) a lot of imported parts for its various models in India itself. It has been doing so for the past 2 months-odd. That helped in lowering the costs involved, and now Honda will also start exporting cars from India to the world.
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Old 12th July 2011, 08:28   #93
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Hi friends,

All I can say is a big WOW. This is the best thing Honda has done till date. Jazz has always been my dream car. But all I could do was just dream. I could not afford it. No matter what I tell to myself I just could not convince myself to put so much money into the honda.
Now all I need is a small nod from my personal dept and I will be off to the nearest showroom.

Are you guys sure of this Price correction. i have not checked the facebook page. But the honda website still reads Insurance at Rs 1 and rs 55k discount on Jazz.

Barath
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Old 12th July 2011, 08:45   #94
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

For people who buy the current stock, what are the implications for the Road tax ? In theory the road tax is calculated on the ex showroom invoice value, but in Karnataka it seems they charge the tax based on the Manufacturers price list which is not updated in real time--you do not get any reduction on the tax amount if the manufacturer/dealer offer discounts. At 14.3% the tax differential itself is pretty big (25 K approx on 1.75 L price reduction) if we can get that. Does anyone know if this is possible?
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Old 12th July 2011, 08:56   #95
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Nice move by honda.It could be better if they haven't sacrificed on parts quality and existing functionality.It would have been better to have 2 lack cut as Fiesta classic Tdci is only a few thousands more than current 'select' OTR price.
Still their service and spares wont be cheap.
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Old 12th July 2011, 09:21   #96
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Quote:
Originally Posted by RavenAvi View Post
Yes it's true, and I have confirmed it from my local Honda dealer.

Base model - (Previous Price) 7,45,000 <---> (Revised Price) 5,87,500

Select model - (Previous Price) 7,56,500 <---> (Revised Price) 5,99,000

X model - (Previous Price) 7,88,500 <---> (Revised Price) 6,31,000


All prices ex-showroom, in CG. No official announcement has been done by Honda regarding this price cut as of yet.

The Select's price comes to 6.7L OTR, and it's a steal now!
Wow Base model 5,87,500 !! this is terrific. So can we expect the Brio to start at approx 4-4.5 ?
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Old 12th July 2011, 09:31   #97
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

I would like to see the july + aug sales of Honda.July is halfway thru so guess the Aug sales will reflect the fluctuation more.
City and Jazz will surely sell more but what i really want to see is the effect of price cut on the seles of civic,accord and crv.If i was a potential buyer i would defer buying the latter models anticipating a similar price cut.And i wouldnt be called greedy,would I?
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Old 12th July 2011, 09:55   #98
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

We all knew it's coming but as it's here now finally, it's really exciting and encouraging, might help in boost sales for short period as also we have some speculation and HSIL facebook page tweets that 1.5L engine will pumped into new Jazz.
Yes, it's true that Honda has started localization of few critical (cost saving point of view) parts like Dashboard in India. I think they are maintaining quality of the localized parts fairly well. This will help HSIL to position Brio under 4.5 Lacs (as a lesson learned, they wont charge high premium for Honda Tag).
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Old 12th July 2011, 09:57   #99
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

I just spoke to the SA at Magnum Honda in Bangalore and he told me this offer is only for the Cars they have in stock. He is offering the Jazz Select for 6.25 L Ex showroom . Honda Website shows price as 7.5 L so he is offering is a reduction of only 1.25 L and not 1.57 or 1.75 that I saw on the other posts.
Also he confirmed the Road Tax is still calculated on the old value, and the Insurance is not "Free", so net on road price in Bangalore for the Jazz Select will be approx Rs 7.5 L (6.25+ 1.05 Tax+ 20 K Insurance).

The Website still shows the old prices, and the FB page has lot of postings ,but I could not spot any "Official post" confirming the price cut.
Honda Car India - Wall | Facebook
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Old 12th July 2011, 10:14   #100
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Quote:
Originally Posted by blackasta View Post
If wishes had wings - I would want a Jazz X + AT at appx 6.5 Lakhs now. Honda has a great 5 speed slushbox - why not mate it with the 90bhp engine?
You've taken the words out of my mouth Blackasta. I was going to say the same thing - if only they were to come out with an A/T or CVT version now - with the reduced prices... I would be seriously considering flogging my 5 year old City and buy that.
Am delighted at this news - I am one of the many who has always maintained that with a sensible price cut, Jazz would zoom up the charts. I am sure it will be among the best sellers in the petrol hatch segment in the coming months.
Just called Peninsular Honda to check out - they confirm that there is a downward revision but have not got the exact pricing.
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Old 12th July 2011, 10:23   #101
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Honda has been traditionally known to give-away huge discounts when a product is about to be phased. I don't think I'll ever be in the market for Honda products, but as a silent observer - I do think this price reduction needs to be clarified / checked thoroughly. There are a few articles around 2011 Jazz, maybe this is a clearance sale afterall, so as the saying goes Buyers Beware
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Old 12th July 2011, 10:27   #102
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

I made this analysis about 6 months back in another Honda Jazz thread. I seem to have predicted this move somewhat early, just that did not "expect" it to happen all this quick! :-(

---------------------------------------------
Feb 2011:

To date, I think honda has made about 21,000 Honda Jazz(see narration below). I am trying to figure how much of that is unsold and the size of the problem Honda has in its hands. My GUESS is that Honda has about 15000 Jazz cars lying in their parking lots- manufactured & un-sold.

And now thats what, a 1000 crore(at Rs.7 lacs invoice value) problem? Considering the backlog, is it safe to assume now in Feb 2011, they would have COMPLETELY stopped production of Jazz until stocks are sold? It seems difficult to believe that if I want a 2011 model today, I cant get it. So I am guessing some sort of intelligent production plan for 2011 might be underway but what about all those unsold cars?

Any ideas how we can go about crunching these numbers from publically available sales figures with more authority? Can anyone point to sales figures for Jazz in one place:

1. 2nd half of 2009
2. Full year of 2010
3. Jan 2011


Narration for 21000 cars made so far:
--------------------------
Assuming production launch around July 2009, Honda Jazz has been in manufacture for about 19 months. I have seen figures ranging from either 1000 cars/month to 1666 cars/month ( from comments about 20k cars/year target). I am quite sure they would have ramped down the production or completely halted it for the last 6 of those 19 months. Lets assume an average of 1333 cars producded for the first 13 months and a 50% production of 666 cars for the last 6 months.
--------------------------
I have mined Honda's website for Jazz sales figures for the past 20 months(2009: 7 months; 2010: 12 months, 2011: 1 month).

Based on that analysis, I can conclude that Honda has officially sold a total of 11,857 Jazz cars for the past 20 months.

Assumption1: Previously I speculated that Honda has manufactured about 21000 Jazz cars. I stand by this but its speculation never the less. In fact I am confident that this figure can only turn out to be higher in truth -- in fact as high as double the current number -- and not lower due to assembly line economics. (Honda has previosuly stated that about 2000 cars/month production capacity has been established. To run the assembly lines at less than 2000 cars/month load would result in other losess)

Impact: Note that, the sales figures quoted above is Honda-Dealer sales. We dont know the off-take of dealers stock by customers. Assuming they have sold bulk of their 11,857 cars, that leaves about 9143 cars(21000 - 11857) manufactured and unsold by Honda.

Assumption2: If you want to speculate, I would add another 2500 cars on top of 9143 Honda stock, as unsold dealer stock. Thats a speculative total of about 11643 Jazz cars lying with dealer + honda stock yard.

Conclusion: There really aren't any, actually. Just some more guesess from my side. Never the less, here it is for what it is worth:

1. There are anywhere between 9143 to 11643 Honda Jazz cars lying unsold with dealer + honda, assuming a total production of 21000 cars so far.

2. This unsold figure can turn out to be three times higher(30643), if Honda in fact produced Jazz 40,000 cars instead of 21,000 as per their monthly target of 2000 cars/month up untill Jan 2011. But I discount this higher figure based on common sense that with an average monthly sales figure about 457 cars, it would be insane for any company to produce 40,000 cars in 20 months!

3. So I would stick by the range suggested earlier of 9143 to 11643 unsold cars as on date. Even with this lower figure, its unclear to me how Honda plans to liquidate these stocks with an average sales figure of 457 cars/month. I cant believe the dealers would now all of a sudden be willing to invoice 2000 Jazz cars/month. All things being equal(no price cuts, no dealer incentives etc.), at this rate, it would take another 25 months to liquidate the current level of stocks. Not being an automobile industry guy, I dont know how big this problem(stock build-up vs off-take) is and how commonly it occurs in the industry but it seems clear its a non-trivial problem with a price tag of about 640 to 815 crores of un-sold inventory with a cash-flow pipeline of 25 months. The interest cost alone to service that 850 crores investment would so huge that would rule out any further discounted sales.

Given the size of them problem is it then possible:

1. That Honda would dismantle the built Jazz cars to utilize the shared components into Honda city to recover costs faster?

2. Slash the prize of the Jazz drastically?

3. Export Jazz 1.2 from India?

4. Take the hit, absorb the inventory and bring in a 1.5Ivtec at the same cost for the all-new Jazz?
----------------------------------------
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Old 12th July 2011, 10:46   #103
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

Quote:
Originally Posted by RavenAvi View Post
A-ha. NOW this furore-creating price cut suddenly starts to make sense.
1.5L iVTEC with 118 BHP? Weehaw! Driving enthusiasts, take note.

I think this will enter the previous price band of the Jazz, at maybe lower rates than the older prices (starting at around 6.9L maybe).
Well in this case, they have devalued their own product by reducing the resale value for existing 1.2 mill owners. There are many of us who would have taken this as the logical upgrade if the resale value for our existing cars was reasonable taking into account the premium we already paid when buying.
I hope they will at least compensate current Jazz owners if/ when they go in for the 1.5L mill. If not, then I have burnt my hands once so will have to rethink about buying a Honda. What if the 1.5L mill doesnt sell well, they might reduce prices drastically in another couple of years!
Edit: again, I understand that as a current owner I may not be on their sales target list. They are definitely targetting the i20/ Liva/ Punto/ Polo prospective buyers. However, this should have been done at the time of the launch itself. Bad for existing owners, great for prospective buyers!

I do agree that from the business point of view, this makes sense trying to position the Brio too. However, as an existing owner I will consider it a sore point till I hear of how Honda intends to compensate us, if at all.

Nevertheless, I called Crystal Honda in Pune and they quoted me the same OTR price as before with regular discount of 55k. Apparently the bigwigs are still discussing the communication from Honda. Their website has the same info too.
Did Honda bungle this up or have the dealers woken up late today?

Last edited by selfdrive : 12th July 2011 at 10:48.
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Old 12th July 2011, 10:51   #104
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

What the hell is going on?
Why is there no official communication from Honda?
I called up two showrooms - one of them was sure of the price cut.
The other one said there is a price cut but they don't have the exact prices.

Honda seems to have goofed it up big time.

It is high time there is some official communication from Honda.

GTO,Sid: do you guys have any concrete info? Is this just a price revision?
Will the Jazz be discontinued? Is a facelift expected shortly?

@selfdrive: forget about compensating the existing owners. I am sure they won't do anything like that. You are right, for my next upgrade, I will think a hundred times before putting my money on a Honda.

Last edited by adimicra : 12th July 2011 at 10:53.
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Old 12th July 2011, 10:52   #105
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Default re: Honda slashes price on Jazz as well ? EDIT: Launch pics of new Jazz Pg.56

I really doubt if this is a clearance sale. Its just a matter of sense prevailing and Honda finally waking up to reality. This is really good for us and bad bad news for i20, polo and the likes. If I were in the market for a premium hatch the Jazz is definitely very high on my list and now with these new price it really is a no brainer. At this price the "spaceship" is is surely a a better deal than most others.
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