Team-BHP - Honda India slashes the City's price by Rs. 44,000

While it's a good move by Honda, there were many factors which contributed to it:

1) Recent recall by Honda for its 'ANHC' model to rectify an issue.

2) Badly itched by VW-Vento (diesel), yeah I am talking about the diesel model. One of my fellow members revealed that there are close to 6000 Vento (Petrol) lying in their stock yard. Imagine what could have happened if VW would have given us TSI engines ?

3) Severely bitten by 'ANHV'. A basic model(1.6) having 'ACC', disc brakes, BT and other many features and still priced lower then 'ANHC'.

4) Very soon to be launched new Ford Fiesta.

Above all, I believe, car manufactures should actually stop taking us(customers) for granted and give us quality product @ a reasonable price.

Cheers

Finally Honda is feeling the heat of the competition and rising fuel prices. Entry level EMT at 7.5lacs ex showroom is very good considering it has ABS/Airbags as standard.

There is an article on TOI today talking about this price cut and funny thing I read was that Honda officials still insist that this price cut is because they have optimized there manufacturing and not necessarily cause of competitive pressures. Anyways whatever makes them happy and gives us lower prices :). Link to the article is given below

Honda lowers City tag by 66,000 as rivals close in - The Times of India

Quote:

Originally Posted by adimicra (Post 2391746)

This indeed is a desparate move.
Honda themselves had said sometime back that hey enjoy much higher margins in the ANHC than Jazz. Now with the competition really heating up with Verna, Vento and Fiesta and ANHC being the bread and butter model, they had to do this.

But, I have my doubts on Jazz. If they had to do it for Jazz, then why not last year? Jazz has not been selling well for the last 2 years and all the hatchbacks like Polo,I20 etc have been launched a year back or more. If they had to do sometihing with the Jazz, then they should have responded long back. What they can do with Jazz is a rejig like Fabia - strip down the features, have couple of lower priced variants and make it more accessible to the normal hatchback buyer.

I can't welcome this move. It is something they have done out of desperation. They are behind the curve and rather than taking the game to the next level , they are responding in the most obvious but childish manner. What they could have done is bring some of the latest technologu and features in the ANHC and other cars with very minimal price hike. It shows that they do not have a long term strategy or vision for India. Pretty disappointing!

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.

Quote:

Originally Posted by Abhi_Automobile (Post 2392133)

The i20 Asta/Polo highline simply arent in the same league..

ABS/Air-bags should be made optional for the Base variant. Most (actually few!) folks I know who has a Jazz is mostly as a second car which is 100% city use only. They dont need the ABS/air-bags but need alloys/fog-lamps/etc..

And the price cut of 1 lakh on the base. For no ABS/Air-bags model, price cut of another 50K.
Total 1.5L reduction on base and features stripped.
Sounds YUM!

This is good news BUT I am telling you it is not going to make the City sell more.

The ANHC is a great car and probably the best BUT what HONDA needs is a diesel.

This morning while driving to work I saw a white civic standing next to me and I thought why the hell does Honda not offer a diesel on it. People are buying the Cruze, Laura, ANHV by the thousands and here HONDA who has everything going for it ( or HAD ) still does not have a diesel. STUPID !!

The city will see a small increase with this price reduction.

Another good thing ( for Petrol owners ) is that diesel is going to go up by 4 rupees any day.

The resale market has City / Civic by the hundreds - 3 year old Civics done less than 30k going for 6 lacs and Citys going for 5 lacs. And this is advertised price. Take into consideration negotiations and you'd see a further 50k minus at least.

At least Honda is doing something !

Quote:

Originally Posted by mayankjha1806 (Post 2390945)

What he did indicated that in Namma Benguluru it will be 30-40k cheaper (Top end City).

Quote:

Originally Posted by swiftnfurious (Post 2391083)

Bangy guys should be benefitting much more on the top end since its less than 10L ex showroom.

I'm surprised! How can the SA say 30-40K, when it is public news that the top end variant is being slashed by 44K? I don't think price slash on ex-showroom should vary from state to state because this is a company price cut, not a dealer discount. If the Bangalore dealers try to sell the top end for anything less than 44K cut, one should report it to Honda directly.

The manual top end (i.e. V MT Exclusive, the one with Leather Seats and Chrome moulding) ex-showroom price in Bangalore was 9,92,500 about a month back on Honda site. It should now be priced at 9,48,500.

All the discounts should be all on top of that. :)

Quote:

Originally Posted by aaggoswami (Post 2392034)

...

Honda India should go to Mitsubishi for diesel engine tech. Mitsubishi recently came up with new diesel engines and Mitsubishi is in need of cash. Go to Mitsubishi, get those diesel units for your cars and see the range of sedans and CRV flying off showroom floors. This is the best option for Honda at this point of time IMO.

Well, I didn't know it yesterday, but Honda does have a pretty good diesel engine of their own design that they put in CR-V in Europe.

They have been manufacturing it for several years (and several generations now).

Quote:

Originally Posted by blackasta (Post 2391800)

I guess it matters - The road tax etc are calculated on the ex showroom price before discount. Its a huge issue (came to know from tbhp) in Karnataka that cars costing above 10 lakhs has to pay more taxes.

Same thing in AP. Vehicles with an ex-showroom price > 10 lacs attract 14% road tax. Every vehicle in your name after the first one will attract 14% irrespective of its ex-showroom price.

I've made this point as well a couple of times in this and other threads - but please check the road tax calculations thoroughly during invoicing. Dealers apply *all* (i.e. mfr, their own, insurance etc.) discounts on the ex-showroom price but quote you the original road tax! If you don't pay attention you can get robbed a pretty packet. I fought with my dealer and got back 6080 INR on my July '10 Civic V M/T.

The discounts that I've heard of before this price cut were only -
- insurance at INR 1
- corporate discount by mfr (which the dealer is recommended but not obligated to match)
- freebies in the form of accessories by a few dealers (so no effect on road tax)

I've *not* heard of any cash discounts by Honda dealers.

The way I see it, after this price cut, item #3 above may not apply anymore. Even item #1 may vanish. Net-net, buyers may actually get *less* for their money than before, simply trading freebie accessories in for non-free insurance.

How much of an impact that will have on volumes is anybody's guess.

Honda + dealers *have* to continue to offer all 3 above for this price cut to have its intended impact. I hope Honda drills sense into its dealers.

Quote:

Originally Posted by vid6639 (Post 2391834)

If they increased the City's price marginally and added features where does that leave the Civic?

I've quoted this as well a few times before. The Civic E was killed when the ANHC V was launched.

But that was then and this is now (and in any case the ANHC V hasn't seen a price rise and so this issue is moot).

Actually it won't be a bad idea at all to bring the E back now!

Regards,
spadix

Quote:

Originally Posted by Abhi_Automobile (Post 2392133)

These are subjective opinions. You think jazz is grossly overpriced, fine.
I don't think so , particularly after all the discounts which are available and hence bought one.
Let us agree to disagree. I do not understand why you are trying to force your opinion on me.

So just spoke the sales chap who did our booking.
Now according to him.
Here are the details of the ANCPHC (All New Cut Price Honda City)
No insurance free as was previously given.
No Honda loyalty bonus ~ amounts to 10K
Only 2 year Warranty and no free Honda RSA (Road Side Assistance)
Extended warranty will cost around 7K.

He said basically i will give you a flat 50K off and nothing more.
Called up Crystal Honda who is the OTHER dealer in Pune.
He said he doesn't have the latest price list yet, but discount will be approx 40K and he too confirmed that insurance is no longer free.

So anyone with any details on the above, please post.

Drive Honda!
Drive Safe!

Quote:

Originally Posted by mdsaab (Post 2392375)

This is what I was thinking.
So, if you go for 4 years warranty and RSA along with the new price, how much are you saving compared to the deal you were getting earlier?
Or, are you saving anything?:)