Team-BHP - Honda Jazz @ Discount.... Beginning of Price Correction !

Quote:

Originally Posted by GTO (Post 1624424)

Whether stock clearance or not, 50K is still not enough. The Jazz deserves a price correction of atleast 1.25 lakhs.

Ajmat had mentioned a Renault instance on another thread : In the UK, they overpriced some car. When the market didn't bite, they accepted their goof-up, corrected the price to more realistic levels and sent a voucher to all existing customers. This is the only way for the Jazz to move forward.

honda has a habit of doing this.

Remember similar thingy happened for their hybrid.
I dunno if they refund their customer or not.

If anyone lives near greater noida, you can see a HUGE stock pileup of the Jazz at Honda plant stockyard.
Yesterday while passing through that plant, I assumed that more than 2000-3000 jazzs must have been parked, awaiting customers.

:OT, felt bad when passing through the defunct Daewoo plant, it was in shambles, BTW is BVR Subbu's argentum motors doing something about it or has it been shelved?

It so sad the JAZZ has no takers. It is difficult to see Jazz on road in Chennai. Where as 1 20 and Ritz are picking up in good number.Why the Honda failed to access the Indian market before releasing the car. The advertisement marketing technique were very attractive, but it failed totally in Pricing.

Quote:

Originally Posted by sidindica (Post 1625357)

Huge stock of 2009 made Jazz means either huge discount or a Price drop is coming. Good news for those in market to buy a premium hatchback.

Honda has got itself in a tight spot there with the Jazz. They are anyway making a huge margin on ANHC, so they should go ahead and cross-subsidise Jazz. Ofcourse the price reduction is going to screw the resale value, and the existing customers are not going to be happy.

It will be interesting to see what Honda does next to clear the piled up stock of Jazz.

Read some where that there was no Jazz manufactured in the month of Nov 09, as huge inventory of build cars are lying ideal in stock yard....Good to see that.
Honda's pricing strategy deserves a boo from Indian customers....Hope to see some really good discounts in the coming days.. In my opinion the prices should drop by 1.25 to 1.5 lacs to make it viable deal.

Quote:

Originally Posted by oss (Post 1625527)

Honda has got itself in a tight spot there with the Jazz. They are anyway making a huge margin on ANHC, so they should go ahead and cross-subsidise Jazz.

I think even at reduced price Honda will make money. With i20 showing consistant sales of 4000 + units per month there is huge scope for Honda Jazz. i20 Asta retails at about 6.50 lakhs on road in Ahmedabad. Even if Honda charges premium and retails Jazz at about 7 lakhs on road, then it won't be difficult for them to do monthly sales of around 4000 + units which is double then what they had planned.

The best winning price for this 1.2 M/T 2 airbags specced version will be similar to Getzprime Plus 10% for Honda's H badge reliability/brand premium .Total not exceeding Rs. 5.25 lakhs ex showroom for Jazz M/T

for Jazz A/T 1.2 engine , 2 airbags Rs.5.95 lakhs ex showroom price will be the High volume winning price for Honda to consider

Quote:

Originally Posted by harimakesh (Post 1627282)

This kind of pricing cannot be possible, These days Getz Petrol is available in Delhi for 3.99lakhs ex showroom + Free Registration + Free Insurance + some more free stuff. I think you are expecting too much from Honda.:D

^^^^
People Car is already released right !

Das Auto! Folks Wagon. Beetle.

Just kidding. But yeah, if Jazz is priced around i20, that would be a nice competition. I am haggling between Polo & ANHC. Just because of VFM of Jazz. But if it is priced right, it will be between Polo & Jazz.

Quote:

Originally Posted by sidindica (Post 1625357)

Does this mean, customers buying Jazz in recent months are getting vehicles manufactured four to five months back?

With such a huge uncleared stock, no wonder Honda has started giving indirect discounts.

I think price reduction for Jazz will be a bad marketing statergy.

Honda can improve trim level offered in the same price to garner more market share.

Quote:

Originally Posted by GTO (Post 1624424)

+1 Jazz is a great car but a terribly overpriced one. This would be the best way to handle this, and this would also keep the existing customers happy.

But i doubt if they would do it.

Quote:

Originally Posted by .anshuman (Post 1624667)

I remember somebody from Honda mention in an interview that production cost of Jazz is similar to making a ANHC, so Honda might be avoiding repricing City.

I doubt it Anshuman. I guess its just a bogus claim from them. For starters the engine is a 1.2 instead of a 1.5. They would get additional tax benefits also because its a sub 4m and a 1.2 engine.