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Old 2nd June 2008, 07:01   #1
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Default Honda Cars cuts City, Civic prices

NEW DELHI: At a time when most automakers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to Rs 5,000 with effect from today on account of the reduction in central sales tax.

"We have received notification from the government on the central sales tax cut from 3 per cent to 2 per cent announced in the Budget. Hence we are reducing the prices of our models City and Civic to pass the benefit to consumers," a Honda Siel Cars India official said.

Mid-sized sedan City will be cheaper by Rs 3,000, while Civic will be cheaper by Rs 5,000.

Before the cut, City was priced between Rs 6.80 lakh and Rs 8.65 lakh, while Civic cost between Rs 10.91 lakh and Rs 12.41 lakh.

The official, however, said the price of the company's SUV Honda CRV will remain unchanged as it does not qualify for the benefit of CST reduction.

The auto industry has been reeling under increasing input costs and last month country's largest car maker Maruti Suzuki India had hiked prices by up to Rs 18,000. Hyundai Motor India is also contemplating a hike this week.


Source : Honda cuts car prices-India Business-Business-The Times of India
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Old 2nd June 2008, 07:52   #2
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ok, now whats the big deal of increasing prices by 10k and cutting it by 5k. besides, although i personally know how much 5k can fetch, there are many for whom 5k amounts to practically nothing. may i say its about 1 month worth of fuel at best?

what we need is not silly price cuts such as this, but more cars in all price ranges. thats because there are people at every price range whose dream is to own a car in that price range. the temptation of stretching beyond your capable price range is always there, but thats just to make a fool out of yourself if you did so.
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Old 2nd June 2008, 08:33   #3
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Surprising move from Honda but then I was of the opinion that they're anyway already priced at a premium.
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Old 2nd June 2008, 09:57   #4
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Who cares really ?? They increase prices when they want and then give us a 5k discount. Ridiculous !!
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Old 2nd June 2008, 11:02   #5
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anything above 25k to 50k cut makes sense. people in bombay who are paying 8 laks plus dont really even see 5k as these days in 5k you only get speakers. plus everything is on loan, so really this cut is going to be invisible
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Old 2nd June 2008, 11:11   #6
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I too read this news item this morning and was feeling good about the company. Last Dec- Jan 08, they had increased prices of City by 5K and they are likely to reduce it by 2-3 K. In Civic they stopped S version and only VLX is available at 60K higher price. They may be offering peanuts compared to its price but still commendable as against all others who are hiking/ hiked prices.
In 5K, we will get a tankful of fuel, buy some sweets for friends and neighbors and it will take care of expenses on taking delivery!
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Old 2nd June 2008, 11:34   #7
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That's less than half percent or 0.5%! It is like saying we have officially reduced our price from Rs.100 to Rs.99.50! I guess the total amt the total money lost by Honda on account for this more than compensates for giving this 'feel-good' feeling to potential buyers. In short a cheap ad.
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Old 2nd June 2008, 14:26   #8
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What was the whole point of reducing the 5k on a car that is priced at 100 times more? A reasonable cut would have been around 50K which would have impacted some buyers. Just out of curiosity....Just how much does the ORVM set (2) cost for a Honda City?

Last edited by theodore_ftw : 2nd June 2008 at 14:38. Reason: Spelling mistake.
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Old 2nd June 2008, 14:46   #9
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Quote:
Originally Posted by theodore_ftw View Post
What was the whole point of reducing the 5k on a car that is priced at 100 times more? A reasonable cut would have been around 50K which would have impacted some buyers. Just out of curiosity....Just how much does the ORVM set (2) cost for a Honda City?
8000 single.........
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Old 2nd June 2008, 14:56   #10
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Its better to say I don't know rather than malign a good product .
Each body colored mirror costs Rs 1,900/- before taxes .
Quote:
Originally Posted by theodore_ftw View Post
Just out of curiosity....Just how much does the ORVM set (2) cost for a Honda City?
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Originally Posted by jesal View Post
8000 single.........
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Old 2nd June 2008, 14:56   #11
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Thats hogwash. Increasing and then decreasing the price of an already overpriced product??!! Hmmph!!
When Skoda came in with a killer price of 10.49 for their Octavia, it taught many car makers not to charge exorbitantly for their products. (GM not being one of them). I say if a European manufacturer can do it why not a Jap or Korean.
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Old 2nd June 2008, 15:06   #12
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Really commendable & thoughtful of Honda to pass the tax benefit to customers .

Hope other manufacturers learn from Honda. Now they might be forced to discard the idea of pocketing the money .
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Originally Posted by undead View Post
NEW DELHI: At a time when most automakers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to Rs 5,000 with effect from today on account of the reduction in central sales tax.

"We have received notification from the government on the central sales tax cut from 3 per cent to 2 per cent announced in the Budget. Hence we are reducing the prices of our models City and Civic to pass the benefit to consumers," a Honda Siel Cars India official said.
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Old 3rd June 2008, 09:43   #13
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Default Amazing maths!!

As always, Honda in India amazes me with their little wits!

Amazing maths:
For the boys in Honda:
-> 1% of 10 Lacs translates to 5,000 for Civic. My calculator says its 10,000.
-> 1% of 7 Lacs translates to 3,000 for Civic. My calculator says its 7,000.

What are they saying in public? In effect, they hiked the prices (or didn't pass the benefits of) upto 4 - 5k?

Are they out their minds (again)?

BH.
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Old 3rd June 2008, 11:04   #14
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Quote:
Originally Posted by diabloo View Post
Its better to say I don't know rather than malign a good product .
Each body colored mirror costs Rs 1,900/- before taxes .
i pay 2500/- each for my accent what are you talking about ? the outside rear view mirror assembly electric one is for 1900 you are saying ? where from please confirm. i am always in tention if my dad breaks it i am done for
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Old 3rd June 2008, 11:22   #15
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Mr BurningHeart - the 1% tax reduction is not on ex-showroom price of the car . So your math is wrong.
Quote:
Originally Posted by BurningHeart View Post
As always, Honda in India amazes me with their little wits!

Amazing maths:
For the boys in Honda:
-> 1% of 10 Lacs translates to 5,000 for Civic. My calculator says its 10,000.
-> 1% of 7 Lacs translates to 3,000 for Civic. My calculator says its 7,000.

What are they saying in public? In effect, they hiked the prices (or didn't pass the benefits of) upto 4 - 5k?

Are they out their minds (again)?

BH.
Thanks mate for correcting. The actual price is Rs 1,700/- (sorry for my mistake). The part code is 76200-SEM-K10. You can walk into any Honda Service Center to get your hands on this.

As I see, there is lot of misconception about NHC - some members trying their best to put it down . The sales of NHC around the globe is an indication on how good the product is. If you have any questions, ask me.
Quote:
Originally Posted by jesal View Post
i pay 2500/- each for my accent what are you talking about ? the outside rear view mirror assembly electric one is for 1900 you are saying ? where from please confirm. i am always in tention if my dad breaks it i am done for
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