Those, who are planning to buy Honda City as their next car to serve their households with can now get the deals at lower prices as Honda Siel Cars India has recently announced on Tuesday about the new price structure that they have decided upon for its volume model Honda City, reason behind the price reduction being stated as a cost reduction effort in the supply chain and manufacturing. The reduced prices are effective from today onwards.

While commenting on the new price structure, Mr. Jnaneswar Sen, Sr. Vice President - Sales & Marketing, Honda Siel Cars India, said, "Our R&D function in India (HRAP-I) started working on localization and cost down activities for our volume models from year 2009. 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."

The India unit of Honda Motor Co. also said on Tuesday that it has cut prices of its City sedan by 4% to 8% with immediate effect and thus the customers can enjoy the reduction in prices from now onwards as the price of the City base model has been reduced to 749,000 rupees ($16,744) from 815,000 rupees at showrooms in New Delhi, confirmed Honda Siel Cars India Ltd.