The basic models of the mid-size Sedan City will be stopped by Honda Siel Cars India. Adding, this will result in adding the price gap between it’s recently releases premium hatchback Jazz and the mid-size sedan.
The company has said to its 100-odd dealers that from the end of the June month the basic models of the City – 1.5E (MT) – will not be provided. This model had a price of Rs 7.81 lakh ex-showroom Delhi and the price of Jazz is Rs 6.98 lakh.
In two grades – 1.5E (MT) and 1.5S (MT and AT) Honda has released the City. Adding, the price is Rs 8.32 lakh for the 1.5S MT and the price is Rs 9.04 lakh for 1.5S AT.
The anticipation of Honda is that with the basic models to contribute nearly a fourth of the model’s sales during the release of the third generation City in India in the month of September 2008. However, 10-15 per cent of the City’s sales are contributed by it and it made the company to move around on selling the models.
Further Honda requires augmenting the price gap between the Jazz, assisting to emphasize it as a premium hatchback and the City. And Honda Siel Cars sold 3,638 units of the City in the month of May.
Also the target is not to distinguish in terms of size but in price as well.
Moreover, it is considered by the company that the pricing of the Jazz is correct and not very much high for a hatchback. Adding, an official from the company said that it satisfies five-star crash test ratings and the hatch door is profound to go with these crash tests.