[bluevolt]

Originally Posted by noopster

So what is the reduction now? If it is in fact 44-66K as the reports suggest, the ANHC should be close to the Vento on price.

ANHC AT on-road price - 10,36,000 INR

Vento AT on-road price - 10,30,000 INR

These prices are for Delhi only.

I guess the price reduction will give tough time to Vento AT petrol.

PS - I will post comparisons of prices between all C segment sedans (petrol) tomorrow.

[ajaynaphade]

Originally Posted by noopster

Very confusing set of prices posted here. What is the OTR for the Honda City AT? Not teh exclusive version.

In Pune city (PMC), my Vento AT cost me 9.94 lac (inclusive of registration, taxes and insurance & nett of corp discount). It's about 10.26 lac if you take insurance from dealer and no corp discount. The V-AT was at 11.31 lac, more than a lac pricier when I bought the Vento. Even with a 50K discount, it was still 50K pricer than the Vento.

So what is the reduction now? If it is in fact 44-66K as the reports suggest, the ANHC should be close to the Vento on price.

Not sure, noopster, what is confusing you? But let me help you. The first picture has the OTR price of all the cars where as the second picture has new OTR price of ANHC. Just got the price of V-AT from the dealer, it is 10,60,915.

I hope this helps.

[MihirC]

Its a brilliant move by Honda, albeit a bit late in the day. My only concern is this this is so very unlike honda that I'm wondering what features have they cut off on if at all any.

[.sushilkumar]

Originally Posted by siddutta

@.sushilkumar
have the increased or decreased the price ?
is it across all models ?

i have never seen prices go down in indian market for cars . the price hike was across all variants and max was 5000 on top end variant if i remember correctly .

[san2]

this is going to affect the valuation of the used cars segment
but honda was left with no option
can expect some more from all the automakers

[ghodlur]

Originally Posted by san2

this is going to affect the valuation of the used cars segment
but honda was left with no option
can expect some more from all the automakers

Not for the City I presume. The resale value of the City has been the highest amongst the other sedans. I doubt this price drop will affect the used car, for City atleast.

[Urban_Nomad]

- By repositioning the City at 50K less, they have effectively left some room for a future diesel variant too. Personally, I would have bought the City even at the older price, and do think that it was well worth the premium. However, and the fact is, that price never left room for a diesel variant. This move has created space for a diesel engine in the future.

- Brilliant because the reaction time was quick. Till just a quarter back, the Honda City was No.1 in its segment. Within 3 months of losing the lead, Honda corrected its pricing. Look around in the market and you'll see that reaction times are longer than 3 months, especially when doing something major that's never been done before (in this case, a pricecut on the City).

I have read and re read the above points, and I just cannot come to terms with what is being said above.

Firstly, I am not very sure a 50k reduction actually creates space for pricing a diesel (whenever that happens) variant effectively. The average price difference between a diesel and petrol C segmenter (same model / version) is 1 lac. And knowing Honda, sticking to average market pricing is not necesarily their strong point now, is it.

Secondly, about the reaction time. Brilliant .... really? If they were a group of "quick action" individuals with ANY foresight, they could have easily seen that the "no diesel engine" issue would come to bite them on their backsides sooner than later. I believe Honda has been in the country long enough to understand the Indian consumer - diesel love affair. If not, god would not be able to help them either. Their decision to cut prices is nothing more than a knee jerk reaction, which at best can be termed as "damage control".

Moreover, from what I am reading on this thread, discounts were always available on the City in some guise. Some members are actually suggesting that this price cut actually makes the City dearer (more expensive) than what it was earlier owing to dealer discounts. And if anyone were to suggest that these "unofficial" dealer discounts were being offered without Honda's blessings, then I must say that it would be a naive statement to make.

Honda is being given more credit than it deserves IMO.

[souravc]

Originally Posted by Urban_Nomad

Honda is being given more credit than it deserves IMO.

Similar sentiments were on display when the recalls happened too ! I think its brilliant that Honda read our psyche so well as to cream us by creating the premium halo

[dharmana]

this is not a brilliant move by Honda. they had to do it sooner or later. what with competition catching up and petrol prices soaring, clearly honda city is not the hot cake it used to be. This is just a desperate effort to boost their sagging sales. Petrol hikes killed Honda in India. If they don't get their act together and launch diesel vehicles, they will be history

[bluevolt]

I have read many comments which questions Honda's timing related to the price reduction. I am presenting the sales data of two cars ANHC and Vento (as per data from sales figures threads)

Sep2010
VW Vento : 1364
Honda City : 6164

Oct 2010
City : 4316
Vento: 1615

Nov 2010
City : 3003
Vento : 2,413


Dec 2010
City : 4380
Vento : 3,160

January 2011
Vento : 2,308
City : 5059

Feb 2011
City : 3668
Vento : 3,548

Mar 2011
Vento : 3,973
City : 2773


april 2011
City : 1542
Vento : 2866

may 2011
City : 1828
Vento : 2,403


As you can see from the figures VW Vento was not a threat to Honda City till January 2011. It was only after petrol price hike, recall, earthquake in Japan and news of new Verna and Fiesta, its sales begun to plunge because of all these reasons. It's just three months since ANHC sales has gone down significantly and now in fourth month company has drastically reduced Ex-showroom price which will benefit many due to the saving in road tax and insurance also. Earlier they were giving discounts, so I guess it will be unfair to question on timings of price reduction. We cannot expect a company to cut the price of its products immediately seeing a drop in sales. Earlier people were complaining that Honda is arrogant and doesn’t respond to market and now when they have, people are still complaining. I guess it’s due to human nature of remaining unsatisfied in all conditions.

[RavenAvi]

Originally Posted by bluevolt

As you can see from the figures VW Vento was not a threat to Honda City till January 2011. It was only after petrol price hike, recall, earthquake in Japan and news of new Verna and Fiesta, its sales begun to plunge because of all these reasons. It's just three months since ANHC sales has gone down significantly and now in fourth month company has drastically reduced Ex-showroom price which will benefit many due to the saving in road tax and insurance also. Earlier they were giving discounts, so I guess it will be unfair to question on timings of price reduction. We cannot expect a company to cut the price of its products immediately seeing a drop in sales. Earlier people were complaining that Honda is arrogant and doesn’t respond to market and now when they have, people are still complaining. I guess it’s due to human nature of remaining unsatisfied in all conditions.

I totally agree.

The Honda brand has always been synonymous with quality and class, and that's why a Honda owner stands out from the rest. Their cars have always been excellent for resales, even after years of ownership. You can't expect Honda to compromise on that by going the drastic-cuts route, that will only affect their sales even more. People will start thinking that a Honda car is no longer a Honda car - exclusive to a certain segment of customers.

And even in the two-wheeler segment, the Activa is a much, much sought-after scooter. Not to mention their bikes are also coming through as great packages.

Honda won't compromise. I predict a diesel engine within the next year, maybe even sooner. I bet most/all of their facelifts due within 2012 will be having one.

[crazyro]

Originally Posted by bluevolt

I have read many comments which questions Honda's timing related to the price reduction. I am presenting the sales data of two cars ANHC and Vento (as per data from sales figures threads)

Sep2010
VW Vento : 1364
Honda City : 6164

Oct 2010
City : 4316
Vento: 1615

Nov 2010
City : 3003
Vento : 2,413


Dec 2010
City : 4380
Vento : 3,160

January 2011
Vento : 2,308
City : 5059

Feb 2011
City : 3668
Vento : 3,548

Mar 2011
Vento : 3,973
City : 2773


april 2011
City : 1542
Vento : 2866

may 2011
City : 1828
Vento : 2,403


As you can see from the figures VW Vento was not a threat to Honda City till January 2011. It was only after petrol price hike, recall, earthquake in Japan and news of new Verna and Fiesta, its sales begun to plunge because of all these reasons. It's just three months since ANHC sales have gone down significantly and now in fourth month company has drastically reduced Ex-showroom price which will benefit many due to the saving in road tax also. Earlier they were giving discounts also, so I guess it will be unfair to question on timings of price reduction. We cannot expect a company to cut the price of its products immediately seeing a drop in sales. Earlier people were complaining that Honda is arrogant and doesn’t respond to market and now when they have, people are still complaining. I guess it’s due to human nature of remaining unsatisfied in all conditions.

well said I just dont understand some of the comments made in this thread. They were unhappy before because it was overpriced and they are unhappy now because they have lowered the price. I think this is an excellent move by Honda. I think ANHC is again going to be the first choice for petrol buyers.

[spadix]

Originally Posted by bluevolt

Earlier people were complaining that Honda is arrogant and doesn’t respond to market and now when they have, people are still complaining. I guess it’s due to human nature of remaining unsatisfied in all conditions.

It's not as simple as that, I think.

As some of the calculations point out, the net effect of this price cut is not that drastic. Like mdsaab and you too have pointed out, dealers aren't giving out freebies and insurance at INR 1 anymore, effectively nullifying the advantage when you look at landed price before and after the price cut. So while Honda has responded to the calls for a price cut, their exalted dealers are continuing to give them short shrift. Let's see how the sales numbers stack up in the coming 2-3 months. I'll be more than happy to eat my words.

The second issue is whether this is a "brilliant" move or not. I for one am in the camp that thinks this isn't a brilliant move. Actually, there are two sub-camps in this camp. One sub-camp thinks this was obvious to many and hence not brilliant (I belong to this sub-camp). The second sub-camp thinks Honda has traded in exclusivity for volumes and this may have ramifications on product quality and hence this move isn't brilliant. On this, I'll subscribe to the "innocent until proven guilty" maxim and swear allegiance to sub-camp #1 .

Finally, Honda's "cover-up" of the price cut by claiming sudden efficiency gains in the supply chain has not gone down well with many. Many see this refusal to admit that they have been blindsided by the deadly triple combo - rising petrol prices, loss in productivity and output due to the quake and tsunami and of course, competition - as a mark of Honda India's supposed arrogance.

Regards,
spadix

[Urban_Nomad]

I guess a lot of us are mis-interpreting what is being put forth vis a vis price City's price cut. Price cut in any form or manner is a welcome move. It warms my heart that the City's prices have been slashed, even though I am not in the market for one.

What I disagree with is the praise stating Honda to be a great strategist / eye on the future and what not. Competition has forced them to take this step. I say this again, if Honda is such a visionary, where are the diesel engines? Did they not foresee such a demand in over 10 years that they have been in India.

A bit OT, but I was offered a flat discount on the Linea T-Jet+ to the tune of 50k .... this without even me bargaining for the same (this from the sales rep of some Fiat / Tata dealership in Noida). Haggle a bit and you will get a lot more than that.

So what now, Fiat is a great strategist .... "luring" people towards the T-Jet? Me thinks not. Its just competition. Cut throat, unforgiving competition.

To sum up, nobody is unhappy about the price cut (quite the contrary actually), but the praise which IMO is unwarrented.

[souravc]

Originally Posted by bluevolt

I have read many comments which questions Honda's timing related to the price reduction.

As you can see from the figures VW Vento was not a threat to Honda City till January 2011. It was only after petrol price hike, recall, earthquake in Japan and news of new Verna and Fiesta, its sales begun to plunge because of all these reasons. It's just three months since ANHC sales has gone down significantly and now in fourth month company has drastically reduced Ex-showroom price which will benefit many due to the saving in road tax and insurance also. Earlier they were giving discounts, so I guess it will be unfair to question on timings of price reduction. We cannot expect a company to cut the price of its products immediately seeing a drop in sales. Earlier people were complaining that Honda is arrogant and doesn’t respond to market and now when they have, people are still complaining. I guess it’s due to human nature of remaining unsatisfied in all conditions.

A few things that you should add to the mix for your consideration :-
1. Each of July , August , Sept of 2010 were months where car sales reached record levels - if I remember correctly Honda was clearly lagging behind even in these months so the view that Honda lagged by three months would ignore these indicators
2. I believe that the onslaught of ANHV is more potent than the Vento/Fiesta (from ANHC's view point) because Hyundai has a proven well oiled service network, which is next to only Maruti. Vento has this weak link while Hyundai outscores Honda comfortably on that count too. Once the product quality gap was nullified by Hyundai, which I believe ANHV has done vis-a-vis the ANHC, Honda was easy meat at that pricing . If Hyundai could take on Maruti , with a ANHV it can very well smoke ANHC out of the charts at its earlier price point. The response to ANHV got the move from Honda.

Further, I don't believe that the 45K - 60K discount going on prior to this announcement didn't have the blessings of Honda themselves . Honda is well known to provide various support to their dealers in return for adhering to very tightly controlled policies and one of them is guidance on pricing . So while 10-15K would have been understandable 50K-60K cannot have been given without the blessings of corporate . Didn't we see a spike in sales last month ? I am sure that the unofficial discounts were a soft run for the official announcement , testing waters.