Barely a day after Maruti launched its new Swift, Japanese car major Honda Siel India on Thursday launched a refurbished version of its small car Jazz slashing its price by over Rs 1.5 lakh.
The changes in the 'new' car are cosmetic, but with a price tag between s Rs 5.5 lakh and Rs 6.1 lakh (ex-showroom Delhi), its impact could be dramatic.
Jazz was launched in 2009 with a jaw dropping price of around Rs 7 lakh that not only made it the most expensive small car in the country but also ensured a sluggish response from consumers. So far only 13,321 units of the Jazz have been sold, slightly more than what Swift does in a month.
Honda said the price reduction is as much due to its efforts to cut costs by more efficient supply chain management as the increasing competition.
"It is a competitive market and competition is increasing day by day," said Jnaneswar Sen, senior vice-president (sales and marketing), Honda Siel Cars India. "We have set up the engine block and cylinder heads at our Tapukara plant in Rajasthan. The engine for Jazz and the upcoming small car Brio is same, and we are expecting good sales volume for Brio. So, economies of scale has also played a role in passing on the benefit to Jazz customers."
With the price cut, Jazz finds itself in a much more comfortable position with the rivals and is likely to find more takers in the market as well.