[bluevolt]

Originally Posted by mdsaab

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

Delhi/NCR team-bhpians/guests this is for you.

I have confirmed from Ring Road Honda (Sec-18, Gurgaon and Rohtak road, Delhi) that there are no offers on Honda City model after price reduction which includes

No roadside assistance
No extended 2 year warranty
No cash discounts or free accessories
No free insurance

Corporate discount is still available.

Honda City SMT is available for 896,000 on road in Gurgaon. So I guess there is nothing much to celebrate for. Road side assistance and extended warranty are worth about 8-10K and free insurance was worth around 25-30K.

PS – The sales person was too excited to sell the car to me. He even noted by address for arranging a test drive but I told him that I will visit the showroom personally.

[Palio_2005]

I don't know why everyone saying it's good move from Honda and congratulating them? It clearly indicates market forces in play. What can be derived though is that they were making huge profits when there was no competition. Now that there's stiff competition from VW and Hyundai they have been forced to cut the prices to boost sales. Frankly ANHC cannot hold a candle to VW Vento or AHNHV in my opinion.

[EssYouWe]

Originally Posted by bluevolt

Delhi/NCR team-bhpians/guests this is for you.


I have confirmed from Ring Road Honda (Sec-18, Gurgaon and Rohtak road, Delhi) that there are no offers on Honda City model after price reduction which includes



No roadside assistance
No extended 2 year warranty
No cash discounts or free accessories
No free insurance


Corporate discount is still available.



Honda City SMT is available for 896,000 on road in Gurgaon. So I guess there is nothing much to celebrate for.

Haha! I thought as much. They still did not undercut the market prevalent price! They just pulled in a part of the discount into the ex-showroom price and pulled the discount off completely.

So, all in all, no sir, we aren't really getting a price drop.

[mdsaab]

Originally Posted by adimicra

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?

The deal i got is 50K flat.
20K Accesories
70K Total

Assuming one gets 50K off via the new deal.
You would have to shell out 7K for Extended Warranty.
and approx 1.5K for Honda RSA per year.
So benefit after paying for the above will be.
41.5K

So the previous deals IMHO were sweeter

[bkbkr1212]

Originally Posted by mdsaab

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!

Can't help pity these snob Honda and their more snobbish dealers.
When Honda gives 50K discount dealers withdraw other benefits.
Dealers should be continuing with other frills to make the Honda Citys move out of the shelf. Honda can pick up sales only if the price difference is substantial i.e to the tune of 75K-1lac.
Till their diesels are launched price cut is the only way to resurrect their best selling vehicle.
We call City a premium vehicle. Honda guys will be laughing at our mindset.

What do we call all those BMWs, Mercs, Audis, Ferraris, Jaguars etc?Or is it that they are not "premium" for us? Forget all these, Accord or CRV qualify to be premium, not Jazz, City, Civic.Just because Jazz and City are not VFM vehicles doesn't necessarily make them premium in any which way.

[dkaile]

By all the above that I am hearing, it seems as a nice marketing gimmick by Honda and nothing more. Sequence of events according to me seems as following -

- Falling demand of Honda City due to rising petrol prices + better competition products/prices
- Honda Dealers forced to offer heavy discount to retain demand
- Honda Dealers no longer able to suffer burden of discounts and must be passing on the same to the Company (my feeling)
- Company thinks its better to reduce price than suffer Dealer's pressure
- Company reduces prices, makes a large hullabol due to that
- Initially customer's come running back to Honda showrooms

Now my predictions-
- Dealer's happy to see customers back/inquiries increasing
- scrap most discounts/offer
- Customer soon realises that he is being taken for a ride and the old deals were sweeter
- Sales back to square one (in 3 month's time) or take a further dip due to lack of diesel motor (6 month's time)

[vina]

Originally Posted by EssYouWe

Haha! I thought as much. They still did not undercut the market prevalent price! They just pulled in a part of the discount into the ex-showroom price and pulled the discount off completely.

So, all in all, no sir, we aren't really getting a price drop.

I think the price cut is more than what he mentioned.

Also you'll still save taxes on the amount.

[muni]

Lot of contradictory things being discussed on the prices. We need someone to actually go to the Showroom and check what the On road price was before( after the discounts and after the price reduction ( with discounts if any) with the obvious break ups of the discounts got. It would put to rest all the speculation. Wouldnt insurance premium also reduce since the car has been priced less along with the road taxes.

a) Ex Showroom Before ( any discount on this)
b) Insurance
c) Freebies
d) Other Taxes if Any

Does that mean that the manufacturer was giving this price discount to the dealer for point a) Ex showroom before. I assume that they do have a percentage of the insurance premium to gain from.

[adimicra]

Originally Posted by mdsaab

The deal i got is 50K flat.
20K Accesories
70K Total

Assuming one gets 50K off via the new deal.
You would have to shell out 7K for Extended Warranty.
and approx 1.5K for Honda RSA per year.
So benefit after paying for the above will be.
41.5K

So the previous deals IMHO were sweeter

Thanks for the clarification man!
This is what I was expecting....so all this hype is for nothing.
The end customer might be paying same or more.

By the way, I think it is good in a way because it saves some time and effort in bargaining with the dealer for the best deal and the outcome might not be same for everyone. This price-cut makes it transparent.

[spadix]

Originally Posted by mdsaab

He said basically i will give you a flat 50K off and nothing more.

mdsaab, this has turned out *exactly* like I predicted just two posts prior to yours!

What an eyewash by Honda! People were better off with the earlier deal, and my reading of Honda's dealers is absolutely spot-on.

@vina/muni: Even earlier, the discounts would be applied to the ex-showroom price. Only, most customers never spotted it and the dealers made extra cash on the road tax. Now they don't have that luxury, and they're hitting back by cutting all other discounts.

The only difference would be the insurance amount. Honda Assure premium used to be calculated before discounts and so any dealer + Honda discounts in the earlier scheme of things never affected the premium. Now they will.

How much can that be? I'll run the numbers from my July 2010 Civic.

Ex-showroom price: 1338800
IDV = 95% of ex-showroom price = 1271860
Insurance premium = 51265 (4%)

Assuming the same formula applies for the ANPCHC, a reduction in 50k in ex-showroom price would correspond to a reduction of a meagre 1900 INR.

Big deal!

Regards,
spadix

[pgsagar]

Price drop by Honda only indicates how panicky Honda is right now. I do not think sales will pick up. What if there is another round of price reduction? Those who buy now will feel cheated.

[StarScream]

Honda's explanation for why they've cut the price sounds completely specious to me. This is a car model that has ruled the roost for more than ten years. In all that time they didn't think of increasing local content and doing the price rationalization they announced yesterday? Makes them seem so terribly pompous and complacent.

It also explains why the City is so lacking in features compared with the competition. They could sell high and maintain their margins - so why bother? That attitude has come and bit them in the a$$.

The City maybe a good car but as a package now it is totally outclassed by the new Verna (great looks) and the new Fiesta (great handling) - and both with a fantastic feature list.

In my opinion this price cut may create some short-term excitement but the sales will drop and the discounts will be back. Reputation can only take you so far, beyond a point the customer starts to realize he is being taken for a ride.

[muni]

Originally Posted by adimicra

Thanks for the clarification man!
This is what I was expecting....so all this hype is for nothing.
The end customer might be paying same or more.
By the way, I think it is good in a way because it saves some time and effort in bargaining with the dealer for the best deal and the outcome might not be same for everyone. This price-cut makes it transparent.

You are right that every customer will get the price reduction irrespective of bargaining. I would assume obvious reductions in Road tax price and Insurance premium if it is a percentage of the Ex showroom price.

Has anybody got the On road quote before with same parameters of model+Insurance+accessories and Now to know the actual difference. A breakup side by side would be helpful.

It would not make sense if it were to cost at least 30K less than before with all the discounts and freebies included.

[swiftnfurious]

Originally Posted by Palio_2005

I don't know why everyone saying it's good move from Honda and congratulating them? What can be derived though is that they were making huge profits when there was no competition.

Who doesn't take profits when they have a good time? Swift D are enjoying good profits and there is not a single Re discount still. VW hiked the price of Vento D alone by 22,000/- recently. So why we have a blame on Honda alone ?

I would say its upto the other manufacturers and customers to take advantage of such situation. Honda lost the game because they gave so much space for others to place their products with decent margins and still look better than Honda at those price points. Now they themselves are feeling the pinch that they reduced such huge amounts.

[mjothi]

Originally Posted by Palio_2005

I don't know why everyone saying it's good move from Honda and congratulating them? It clearly indicates market forces in play.

+1.

They do not offer. They were forced to offer. No other options. Its more of a do or die situation.

Yes, customer is king. But the problem is, it means the "majority of customer"

If this price reduction is not helping them, whats next? one more on the plate?

I doubt. but Diesel is what needed. Not the price reduction I guess.

But after reading other post saying the reduction is not just in price, but also what they offer, it seems its just a PR tactics.

Whatever, good luck Honda.