Honda Siel cuts prices by up to Rs 31,000

Carmaker Honda Siel Cars India on Tuesday slashed the prices of its products by up to Rs 31,000 in response to the government's move to cut Cenvat by four per cent.

The company's largest selling sedan 'City' will be cheaper by Rs 19,000-Rs 21,000, while 'Civic' will cost Rs 29,000-Rs 31,000 less, an HSCI statement said.

Top-end sedan 'Accord' will be cheaper between Rs 27,000 and Rs 28,000, it added.

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The company, however, has not reduced the price of its sports-utility vehicle 'Honda CR-V' as it is a fully imported unit.

"We welcome this move by the government. The reduction in duty will give the necessary boost to consumer demand and fuel growth in the Indian economy," HSCI President and CEO M Takedagawa said.

He said the steps taken by the government would also arrest the negative growth in the automobile sector.

HSCI said the proposed price increase of all the models has been postponed for the time being.

However, it is planning to increase the prices of 'CR-V' between Rs 100,000 and Rs 1,25,000 in the early next year. It had announced to increase the price of the SUV by up to Rs 1,50,000.

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