Asia Bizz: Japanese auto giant Honda, which sells the popular City in the sedan segment, has launched its new Honda City car on December 14, 2011. The news is that the company has reduced the cost of the new City by Rs. 50,000 compared to the earlier model.

Honda operates in India along with Siel Group, which had slashed the price of the City by Rs. 66,000 in the month of June after implementing various cost reduction measures. A new version of the car has been launched in the Indian market and the price of the new City starts from Rs. 6.99 lakhs.

The top end model of the new City will cost at Rs. 10.22 lakhs. While the earlier version of the City cost at Rs. 7.49 lakhs,  the top end version of the City came at a price tag of Rs. 9.89 lakhs.

Seki Naba the HSCI Director of marketing said that their target is to provide the most affordable products to the customers. The company has now launched the Corporate version of the City, but does not have some of the features of the earlier version. The research and development division is right now working on the localization of the components so as to implement the cost reduction activities.