Honda's Indian car unit has cut prices of its premium Jazz by up to Rs 1.62 lakh in a move to win back customers. The hatchback will now be available for a starting price of Rs 5.50 lakh, taking on competition from Hyundai's i20, Nissan's Micra and Volkswagen's Polo, Maruti's Swift, Fiat's Punto, Toyota's Liva and Skoda's Fabia.
"The new Jazz, with an attractive pricing, will surely appeal to customers. With better sourcing and economies of scale for Jazz from higher production, we would be able to garner larger chunk of sales in the premium hatchback segment," Honda Siel Cars India director Seki Inaba said.
Powered by the same 1.2-litre i-VTEC petrol engine, the new Jazz is said to give an average of 16.7 km a litre. It sports improved aerodynamic design on the front grill besides beige interiors and a USB port in the music system.
Monthly sales of Jazz have dropped nearly 50% over the last few months to about 250, despite freebies and cash incentives for buyers. The model, launched in India in
June 2009 by Honda Siel Cars India, has sold a little over 13,000 units so far with a price tag over Rs 7 lakh.
"Jazz's sales could off-take now and the car could reach an average of 3,000 units per month if Honda can manage to supply it. While other manufacturers would be forced to increase discounts, leading to a virtual price war," IHS Automotive India's managing director Deepesh Rathore said,
The price has also been revised to accommodate Honda's upcoming compact car 'Brio', which is expected to cost below Rs 5 lakh.
Honda's price cut comes a day after Maruti Suzuki, the country's largest carmaker, launched a new version of its popular 'Swift' hatchback with starting price of Rs 4.22 lakh.
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