At a time when Ford, General Motors and Hyundai entered the market with their Ikon, Corsa and Accent models respectively with base model price of about Rs 5-5.5 lakhs, Honda increased price of its base model 1.3 LXI by Rs 17,000 to Rs 6.05 lakhs.

The new look Honda City models would replace the existing City car variants with immediate effect as the company has already stopped production of earlier version and started manufacturing the new versions.

Launching four variants of the new look city model, Honda Siel president and chief executive officer (CEO) T Fujisaki said there was a cost increase of about Rs 50,000 on each car due to additional features but the company decided to absorb a major share of the increased cost.

The new versions of Honda City would have some additional features such asincreased length, better suspension, improved air-conditioning besides giving a new look with redesigned rear bumper and rear panel line and distinct front grill.

Asked whether the company was still pursuing the matter pending with the government regarding import of completely built units (CBUS) of cars, Fujisaki said Honda Siel was waiting for government's response in this matter.