At a time when most auto makers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to Rs 5,000 with effect from today on account of the reduction in central sales tax.
"We have received notification from the government on the central sales tax cut from 3 per cent to 2 per cent announced in the Budget. Hence we are reducing the prices of our models City and Civic to pass the benefit to consumers," a Honda Siel Cars India official said.
Mid-sized sedan City will be cheaper by Rs 3,000, while Civic will be cheaper by Rs 5,000. Before the cut, the City was priced between Rs 6.80 lakh and Rs 8.65 lakh, while Civic cost between Rs 10.91 lakh and Rs 12.41 lakh.
The official, however, said the price of the company's SUV Honda CRV will remain unchanged as it does not qualify for the benefit of CST reduction.