Honda Siel Cars India on Tuesday said it has cut the prices of its flagship sedan City by up to Rs 66,000 after implementing various cost reduction measures.
The car will now be available between Rs 7.49 lakh and Rs 9.89 lakh (ex-showroom, Delhi), Honda Siel Cars India (HSCI) said in a statement.
"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," HSCI Senior Vice President (Sales and Marketing) Jnaneswar Sen said.
The company's R&D division had started working on localisation and cost reduction activities for its volume models from 2009, he added.
"This price revision is in line with Honda's global vision of creating products that maximise the joy of customers, with speed, affordability and low CO2," HSCI said.
'City' sales have been facing stiff resistance from other models in the segment such as Hyundai Verna, Maruti SX4 and Volkswagen Vento.
While Verna, SX4 and Vento offer both diesel and petrol options, City comes only in petrol variant.