While reading the HTBusiness i came across an article on the main page reading “Honda cuts City prices as competition bites…” After a launch of New Hyundai Verna and the upcoming launch of the New Ford Fiesta, Honda decided to cut the prices of their best selling Honda City by Rs.44,000-Rs.66,000. The shocker to me is that the company is saying that this cut is not because of the competition but because of they have achieved cost reduction in their supply chain and manufacturing.

All of a sudden as the competition heated up, Honda achieved reduction in cost.. how convenient. Basically Honda milked the customers with their overly high priced car till the time there was no competition and then they reduced the price when say saw competition eating up their market share.

The question remains… what happens to the people who bough the city recently… would they get a refund?