New Delhi: At a time when most automakers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to Rs5,000 with effect from today on account of the reduction in central sales tax.
“We have received notification from the government on the central sales tax cut from 3% to 2% announced in the Budget. Hence we are reducing the prices of our models City and Civic to pass the benefit to consumers,” a Honda Siel Cars India official told PTI.
Mid-sized sedan City will be cheaper by Rs3,000, while Civic will be cheaper by Rs5,000.
Before the cut, City was priced between Rs6.80 lakh and Rs8.65 lakh, while Civic cost between Rs10.91 lakh and Rs12.41 lakh.
The official, however, said the price of the company’s SUV Honda CRV will remain unchanged as it does not qualify for the benefit of CST reduction.
The auto industry has been reeling under increasing input costs and last month country’s largest car maker Maruti Suzuki India had hiked prices by up to Rs18,000. Hyundai Motor India is also contemplating a hike this week.