To counter the competition especially the Volkswagen vento, Honda has slashed the price of its flagship sedan City. Honda says that cost reduction is possible through its cost reduction efforts in the supply chain & manufacturing City price reduction will be effective from June 14, 2011.
Commenting on the new price structure, Mr. Jnaneswar Sen, Sr. Vice President – Sales & Marketing, Honda Siel Cars India, said, “Our R&D function in India (HRAP-I) started working on localization and cost down activities for our volume models from year 2009. In anticipation of bigger volumes resulting in economies of scale from the second half of current year, we have achieved considerable cost reduction and are happy to pass on the benefit to the customers with immediate effect. The Honda City would now start from Rs 7.49 lakhs (ex showroom Delhi).”
The variant-wise ex-showroom, Delhi price of City is as follows:
| Price Change : Summary | W.E.F : 14 June 2011 | |||
| Type | Ex-Showroom (Delhi) | |||
| Current | New | Diff | ||
| City | EMT | 8,15,000 | 7,49,000 | (-) 66,000 |
| SMT | 8,64,600 | 8,19,600 | (-) 45,000 | |
| VMT | 9,09,800 | 8,64,800 | (-) 45,000 | |
| VMT Exclusive | 9,60,900 | 9,16,900 | (-) 44,000 | |
| VAT | 9,82,000 | 9,37,000 | (-) 45,000 | |
| VAT Exclusive | 10,33,100 | 9,89,100 | (-) 44,000 | |