Honda Siel India has slashed INR150,000 (US$3,200) off the price of its facelifted Jazz .

The changes in the ‘new’ car are cosmetic but prices now range between INRR550,000 and INR610,000 compared with the 2009 launch price of around R7 lakh that, the Hindustan Times said, not only made it the most expensive small car in the country but also ensured a sluggish response from consumers. So far only 13,321 units have been sold, slightly more than rival Maruti Suzuki’s Swift [just redesigned] does in a month.

Honda said the price reduction was as much due to its efforts to cut costs by more efficient supply chain management as the increasing competition.

“It is a competitive market and competition is increasing day by day,” said Jnaneswar Sen, senior vice-president (sales and marketing), Honda Siel Cars India. “We have set up [manufacture of] the engine block and cylinder heads at our Tapukara plant in Rajasthan.

“The engine for Jazz and the upcoming BRIO small car is the same and we are expecting good sales volume for Brio. So, economies of scale has also played a role in passing on the benefit to Jazz customers.”