Honda City sales ramp up after price cut

Latest sales reports have demonstrated that the Honda City has boosted up its sales in the month of June for about 53% from 1800 cars in May 2011 to 2802 cars in June 2011, which is a significant victory. The credit for this increase in sales can be accounted to the reduction in the price of Honda City by Honda India. Honda India has slashed Honda City price by 65000 and the results are evident from the sales report of the last month, thus the decision proved fruitful to the company and acted as an ace for preserving volumes and goodwill of Honda India in the Indian auto market.

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Sales statistics revealed that Honda India managed to sell only 4,595 cars in India in June 2011, which is heart-breaking figure for Honda India. Although price cut in Honda City ramped up the sales of Honda City, but the sales count of other models of Honda India were not decent. Honda Jazz accounted sales of 361 cars whereas sales of Honda Civic confined to only 175 cars. Honda Accord and Honda CR-V demonstrated sales of 103 cars and 14 cars respectively. Looking at the sales figure, market aficionados have speculated the probability of further price cut in future on most of the models.

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Honda India seems to lose its monopoly over the sedan segment as evident from the sales of Volkswagen Vento  which is pretty higher than the sales of Honda City for the month of June 2011. The key factors that account for low sales of Honda City is mainly price, marketing and fuel.

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Honda India is dwindling to cater volumes and for this it is taking various measures. One step towards this is facelift of Honda City,which is on the cards. In addition to this Honda India is also eyeing to launch Honda City diesel by 2013, it has been speculated that  Honda Civic may also be launched in its diesel variant. Honda India is counting on these moves to raise volumes in Indian auto market.

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