Honda Siel Cars India has cut prices of the City. The car’s base–level version will now retail at Rs 7.49,000, ex-showroom, Delhi as against Rs 8,15,000, earlier. In a press release, Honda said the price revision follows considerable cost reduction efforts in the supply chain and manufacturing.
The City has faced severe competition from newcomer, the Volkswagen Vento and the SX4 which Maruti equipped with a diesel variant in March 2011. Sales of the Vento and the City have been neck and neck and in recent months, have zoomed ahead of the City in the mid-sized segment. The cut in prices is aimed at reviving sales of the City which has clearly borne the brunt of increasing petrol prices. The last hike took place on 15 May 2011 with petrol going up by Rs 5 a litre, its highest ever.