Honda Civic and City price cut
Honda Siel Cars India announced a cut in the price of its popular sedan’s Honda City and Honda Civic by up to Rs 5,000 with effect from Sunday, on account of reduction in the central sales tax. Mid-size sedan City will be cheaper by Rs 3,000 and premium sedan Civic by Rs 5,000. Before the cut, 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.
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
Its unexpected as last month country’s largest car maker Maruti Suzuki India had hiked prices by up to Rs 18,000. Hyundai Motor India is also contemplating a hike this week.
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Published on Saturday, May 31st, 2008 at 7:54 pm under categories : HondaTags : Auto News, Honda, Honda City, Honda Civic, Price Cut
how is a reduction in sales tax lead to a reduction in the price of the car? i understand that it lowers the final cost to the buyer, but i don’t get why the actual cost of the car would change?
Comment by kent September 24th, 2008 at 7:46 am