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Old 7th July 2009, 06:30   #1
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Default Honda not to pass on Duty reduction. EDIT : Now they will

NEW DELHI: Leading auto manufacturers are set to reduce the prices of their high-end cars as they mull to pass on the benefit of the excise cut on big cars to consumers.

Hindustan Motors Ltd (HML) is the first company to announce price cuts of Rs 6,000 on its partner Mitsubishi's Pajero, Outlander and Montero cars.

While BMW, General Motors and Toyota said they would pass on the benefits of excise cut, Tata Motors said it would soon announced its decision on it.

"We will pass on the benefits of this excise duty cut to our customers immediately," General Motors India Vice President P Balendran told media.

Another carmaker Toyota Kirloskar Motor (TKM) would also react according to the Budget's proposal. "We have always been passing on all benefits to the customers, which we get from the government. Though this cut is very minimum, still we will pass on this," TKM Deputy Managing Director (Marketing) Sandeep Singh said.

However, Honda Siel Cars India (HSCI) said it would not cut the prices of its vehicles. "We will not cut prices. There is lot of pressure on bottom line due to depreciation of Rupee in the international market," a HSCI spokesperson said.

While presenting the Budget, Finance Minister Pranab Mukherjee today proposed to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit. The Minister also cut the duty of petrol-driven trucks to eight per cent from 20 per cent at present.

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*****

Honda thinks it is the only company affected by depreciating rupee. Honda had increased the prices in April citing the same reason. In any case Rupee has been steadily appreciating since April so they should have actually reduced the prices.

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Last edited by Technocrat : 7th July 2009 at 12:30. Reason: please read the note in post, thanks
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Old 7th July 2009, 06:44   #2
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I guess the only cars in Honda stable is Accord and CRV which may benefit from a 5k price cut. But the bottom line is you are talking about a 5k price cut for a 16 lakh rupee car. A dealer would be able to offer you more discount than that. This is just a notional cut more than anything else.
Mistu itself should cut the price of Cedia since its over 2000 cc. There is a lot of hue and cry about Honda prices. I for one remember Cedia (with less kit) Select being sold for 8.5 lakhs and now its at 10 lakhs. What say???
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Old 7th July 2009, 06:58   #3
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There you go,end of story. These cars find buyers nevertheless.
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Old 7th July 2009, 07:47   #4
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I hope nobody has forgotten the 3.54 Lakh price hike on the CRV stating the same reason by Honda!

Honda has a great potential in beating Ali Baba and the forty thieves. Poor thieves must be feeling helpless looking at Honda India's strategy!

Last edited by anachronix : 7th July 2009 at 07:49.
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Old 7th July 2009, 08:10   #5
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Originally Posted by anachronix View Post
I hope nobody has forgotten the 3.54 Lakh price hike on the CRV stating the same reason by Honda!
Look at the sales thread. No. of CRVs sold : 0
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Old 7th July 2009, 09:17   #6
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What about the ridiculous price of the Jazz. No reasons stated!
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Old 7th July 2009, 09:26   #7
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Originally Posted by Aditya View Post
Look at the sales thread. No. of CRVs sold : 0
They've stopped importing CRVs for some reason. I think they're waiting for the 2L model or something. I forgot.

Anyway, 5K is 5K. I can buy petrol for my Civic for nearly two months for that money. Still, I think Accord and CR-V buyers won't even notice that kind of a change considering how much they pay for one of these vehicles.

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What about the ridiculous price of the Jazz. No reasons stated!
And why do you think they need to state reasons? If you cannot or will not pay for a Jazz, there arel options like the GP and i20. This is a capitalist economy dude. No company needs to justify pricing in the presence of competition - the consumer votes with their wallet.

Last edited by ImmortalZ : 7th July 2009 at 09:27.
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Old 7th July 2009, 09:38   #8
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Originally Posted by pedrolourenco View Post
What about the ridiculous price of the Jazz. No reasons stated!
I agree BUT

As they say,"Eat US Beef", a million Coyotes cannot be wrong". They have booked a huge number!
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Old 7th July 2009, 09:40   #9
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Originally Posted by aseem View Post
Mistu itself should cut the price of Cedia since its over 2000 cc. There is a lot of hue and cry about Honda prices. I for one remember Cedia (with less kit) Select being sold for 8.5 lakhs and now its at 10 lakhs. What say???
The Cedia is not over 2000cc. Its 1999cc to be precise.
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Old 7th July 2009, 09:45   #10
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Originally Posted by ImmortalZ View Post
And why do you think they need to state reasons? If you cannot or will not pay for a Jazz, there arel options like the GP and i20. This is a capitalist economy dude. No company needs to justify pricing in the presence of competition - the consumer votes with their wallet.
I'm not asking for reasons. I was just reacting to previous posts about price increase with reasons given by Honda. The same logic of not giving any reasons should have applied there too.

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I agree BUT As they say,"Eat US Beef", a million Coyotes cannot be wrong". They have booked a huge number!
I'm not a part of that huge number. My budget does not permit that. Even if it did I would still look for a better VFM option.
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Old 7th July 2009, 10:47   #11
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think Tbhp is starting to look like a Honda bashing thread. Anything can everything is a big story. 5K for an Accord/CRV buyer is pretty insignificant - as someone said - he might get a much better dealer discount. But i guess its fashionable to go call Honda greedy.
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Old 7th July 2009, 11:16   #12
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think Tbhp is starting to look like a Honda bashing thread. Anything can everything is a big story.But i guess its fashionable to go call Honda greedy.
What is irritating people is that Honda is not behaving upfront and honest about this. It's more about integrity then 5,000 bucks. When even BMW is announcing a 5K price cut on their 35 Lakh rupee car then why not Honda on their 16 Lakh rupee one?

Quote:
5K for an Accord/CRV buyer is pretty insignificant
I don't agree with the 5k for an Accord buyer is insignificiant. Isn't 5K insignificiant for Honda too? Do we honestly believe that reducing prices by 5,000 on a 16 lakh rupee Accord will hit Honda's profitablity that much?!
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Old 7th July 2009, 11:45   #13
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What is irritating people is that Honda is not behaving upfront and honest about this. It's more about integrity then 5,000 bucks. When even BMW is announcing a 5K price cut on their 35 Lakh rupee car then why not Honda on their 16 Lakh rupee one?

I don't agree with the 5k for an Accord buyer is insignificiant. Isn't 5K insignificiant for Honda too? Do we honestly believe that reducing prices by 5,000 on a 16 lakh rupee Accord will hit Honda's profitablity that much?!
Totally agree. Whether it's Rs.5000 or Rs.1, the benifit should be passed on to the customer. At least BMW is doing it.
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Old 7th July 2009, 11:56   #14
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Are we not making much ado about nothing.
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Old 7th July 2009, 12:00   #15
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Demanding 5k off from Honda is like "Bhagta hua chor ki langot".

Translated: When Honda is already charging huge premiums on its products, demanding a benefit of 5K is like being satisfied with grabbing the fleeing theif's underwear.
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