Honda Announces GST 2.0 Price Cuts On Amaze, City And Elevate
Honda Cars India has announced significant price reductions, cutting up to ₹1.2 lakh across its portfolio. The changes bring key models such as the Amaze, Elevate and City into lower price bands, improving their value positioning at a time when most manufacturers are revising tags after the GST 2.0 reform.
Amaze Now Under ₹10 Lakh
The Amaze compact sedan is now priced below the ₹10 lakh mark across its line-up. The top ZX CVT variant, earlier ₹11.2 lakh, has dropped to ₹9.99 lakh. This makes the Amaze appear closer to rivals such as the Maruti Dzire, which has traditionally held a pricing edge. For budget-sensitive buyers, the new tags remove a barrier that kept the Amaze at a higher level than some competitors.
Elevate Pricing Reset
Honda’s Elevate SUV has also seen a notable revision. The base SV MT is now ₹10.99 lakh, down by almost ₹91,000. This adjustment positions the Elevate more directly against mid-size SUVs like the Hyundai Creta and Kia Seltos, which continue to dominate sales in the segment. The revised entry price narrows the gap and could make the Elevate more visible to buyers comparing across brands.
City and Hybrid Adjustments
The Honda City has received smaller cuts, with a maximum drop of ₹57,500. The hybrid City e:HEV is now listed at ₹19.48 lakh. These changes place the City in closer contention with the Hyundai Verna, Volkswagen Virtus and Skoda Slavia, though competitors still offer feature sets that some buyers prefer. For Honda, the adjustment ensures the City remains part of the discussion in the premium sedan category.
Price War Heats Up
The reductions come in the context of GST 2.0, which lowered tax on small cars from 28% to 18%. Several manufacturers have already acted: Tata Motors has announced cuts up to ₹1.55 lakh, while Toyota has reduced select models by as much as ₹3.49 lakh. Honda’s decision to go beyond tax-related adjustments and carry forward extra reductions until December 2025 indicates a push to improve showroom traffic during the high-demand months.
Feedback from buyers shows where Honda still faces challenges. Amaze owners note strengths in build and reliability but often raise concerns about fuel efficiency not matching claims and somewhat noisy engine. Elevate buyers highlight ride comfort and sturdiness, while pointing to the absence of features like a panoramic sunroof. By lowering prices, Honda is trying to offset these gaps in equipment by increasing the value equation. On the plus side, Honda offers more valuable features such ADAS in more variants than competitors.
Operationally, Honda has also been working below optimal factory utilisation. Pushing volumes through sharper pricing makes financial sense when capacity is underused. The success of Elevate exports gives Honda additional flexibility to absorb thinner domestic margins.
Rival manufacturers still retain stronger dealer networks and broader service coverage, factors that influence long-term ownership experience. Honda must rely on sharper pricing, combined with its reputation for reliability and lower upkeep costs, to attract new buyers.