Latest Car News in India

Would Honda Jazz also get a price cut

Honda SIEL shocked everybody by cutting down the price of its front-runner Honda City by almost INR 66,000. Now it’s wondered whether the Honda Jazz will see the same price cut, especially when the Honda Jazz has been an awful seller, with sales just amounting to a portion of the 2,000 cars/month Honda wished to sell since its launch.

Honda Jazz is definitely a superb car, but the towering price label has been the party spoiler. As the Indian car market still demands a roomy and flexible hatchback, a price cut could really turn fortune for the Honda Jazz. However, the thing that seems to work with the Honda CITY may not work the same as with the Jazz.

The Honda City S was rolled out in 2008 with a price of INR 8,20,000 Ex-Showroom Delhi, and is now available for precisely the same money even after the price cut. Honda had hiked the price of the Honda City S by approximately 44,000 Rupees within the three years of its launch. But in case of Jazz, the price hike hasn’t been much since its launch, which went from INR 6,80,00 to INR 7,12,000 Ex-Showroom Delhi. For a price drop like that of the Honda City for the Jazz would mean bigger hit in Honda’s margins which really not be possible for them.

In addition, Honda brand’s customary strength of strong resale value may also be adversely affected with a price cut. Honda may consider launching the new version of Jazz instead of a price cut in the existing version. Honda Jazz is already offered by the dealers with benefits approximating to INR 50,000,so a price cut would just mean giving it an official feel.

Some of the popular hatchback models in the Indian auto market are Ford Figo, Maruti Swift, Hyundai i10, Chevrolet Beat and Volkswagen Polo. Apart from these popular models, cars going to hit the Indian roads this year are Toyota Etios Liva, Maruti Cervo and New Ford Fiesta.