Honda Siel Cars India on Tuesday announced the new price structure for its volume model Honda City. The price reduction has been attributed to cost reduction efforts in the supply chain and manufacturing, and losing market share due to the rising petrol prices.

Commenting on the new price structure, Mr. Jnaneswar Sen , Sr. Vice President - Sales & Marketing, Honda Siel Cars India, said, "Our R&D function in India (HRAP-I) started working on localization and cost down activities for our volume models from year 2009. In anticipation of bigger volumes resulting in economies of scale from the second half of current year, we have achieved considerable cost reduction and are happy to pass on the benefit to the customers with immediate effect. The Honda City would now start from Rs 7.49 lakhs (ex showroom Delhi)."