Will Honda give the Jazz a price cut too?
Even as Honda SIEL pulled off a shocker by lowering the price of it’s bread’n'butter Honda City by up to 66,000 Rupees, we’re wondering whether the Honda Jazz will be the next car to see a price drop. This, as the Honda Jazz has been an abysmal seller, selling just a fraction of the 2,000 cars/month Honda targeted for the car, at it’s launch a couple of years ago.
Make no mistake, the Honda Jazz is a great car, but let down badly by it’s high price tag. A price cut could really turn things around for the Honda Jazz, as a demand for a spacious and versatile hatchback still exists in the Indian car market. On the other hand, what Honda has done with the City might not exactly work for the Jazz, which is already available with dealer discounts and freebies to the tune of 50,000 Rupees.
This is because, while the Honda City S was launched in 2008 at a price of INR 8,20,000 Ex-Showroom Delhi, it is now being available after the price cut for exactly the same money. In essence, Honda has hiked the price of the Honda City S by almost 44,000 Rupees in the three years between the car’s launch and now citing higher input costs, and now Honda has dropped exactly the same amount by which it hiked City prices over the years.
But when it comes to the Jazz, the price hike has been much more minimal over the last couple of years, which at INR 7,12,000 Ex-Showroom Delhi is just 14,000 Rupees more than that of the launch price of INR 6,98,000. So, a price drop as steep as that of the City, for the Jazz would mean that Honda will have to take a big hit in it’s margins and that is something we aren’t too sure of Honda being able to stomach.
Also, a price drop of the Jazz at this juncture could be a case of a little too much-too soon, and that could adversely affect the Honda brand’s traditional strength, that of strong resale value. So, a Jazz price cut in the near term looks quite unlikely although Honda could definitely look at a price cut a few months down the line, when a refreshed Jazz arrives.
On the other hand though, a price cut for the Jazz would only make official what Honda dealers have been doing for quite some time now, by giving big discounts of up to 50,000 Rupees on the Honda Jazz in various forms. So, which way will this swing is something we’re going to keep a close eye on. Watch this space.