Honda has decided to forgo an amount of upto Rs. 1,75,000 on its hatchback Jazz which currently sells at Rs. 7,12,000 – Rs. 7,60,000, thus bringing down the price to Rs.5,50,000 – Rs. 5,80,000. The decision comes as a result of dwindling sales of the hatchback. A dealer discount of Rs. 50,000 – Rs. 55,000 is already available on the car. Since its launch, the car has been a part of the premium priced segment. Apparently, the Jazz X variant of the car is costlier than the Honda City E which is the base model of the sedan. Thus, the customers who consider buying Jazz wouldn’t mind paying a little extra for a Honda City which is being offered at an attractive discounted price. As a result the sales for the hatchback have fallen significantly.
The total price cut will include Rs. 55,000 dealer discount, an insurance offer amounting to Rs. 25,000 at Re. 1 and a price cut of Rs. 95,000 on the showroom price, bringing the total drop in the price to around Rs. 1,75,000. This strategy will make the hatchback an attractive proposition for the Indian customers. The car will now compete with the market leaders such as Maruti Suzuki Swift, Ford Figo, Fiat Punto and Volkswagen Polo.
