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Yesterday, Honda shocked everyone in India by cutting the prices of its bread and butter model, the City by upto 6%. Now with the new revised prices, the City’s basic variant is cheaper than the top end Jazz X. For the uninitiated, the Honda City E is priced at Rs. 7.49 lakhs, whereas the Honda Jazz X is priced at Rs. 7.56 lakhs (all prices ex-showroom, Delhi). Such pricing can be a disaster for the Jazz, considering we are a boot loving country and don’t mind paying extra to get a bigger car. But since the Jazz is more expensive, customers planning to buy a Jazz will automatically switch to the City, which is not only bigger in terms of luggage space but even sports a faster engine.
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Last month Honda sold 1848 units of the City, whereas it only sold 170 units of the Jazz. Sales of the Jazz are dropping faster than Honda thought and now there are left with no option but to correct the pricing. Unofficially dealers have been shelling out big discounts to the tune of Rs. 50,000/- to push the Jazz. However till Honda bring in a diesel, we expect the Jazz to sell in double digit numbers. We had driven the Jazz last year and find the car a very practical alternative, but priced very incorrectly. You can read our review on the Honda Jazz here.
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