At a time when most auto makers in the country are hiking prices, Honda Siel Cars India said it is cutting rates of sedans by up to ₹5,000 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 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,' a Honda Siel Cars India official said.
Mid-sized sedan City will be cheaper by ₹3,000, while Civic will be cheaper by ₹5,000. Before the cut, the City was priced between ₹6.80 lakh and ₹8.65 lakh, while Civic cost between ₹10.91 lakh and ₹12.41 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.