As per the price cut effective from Tuesday, Honda City 1.5 EXi would cost Rs 6,49,500; Honda City GXi would cost Rs 6,99,500 and City CVT would be priced at Rs 7,59,500 (ex showroom Delhi).

Honda Accord VTI-L manual variant would now cost Rs 14,71,000, while the automatic variant would be priced at Rs 15,42,000. Honda Accord V6 (A/T) would now cost Rs 16,99,001.

The cuts follow customs duty slash announced in the budget presented on Monday.

The budget has proposed reduction in the peak rate of customs duty by five per cent to 15 per cent, a move that would benefit auto companies selling cars in India through CBU or CKU routes.

"The five per cent cut in the peak customs duty is a welcome move from the government. We are extremely pleased to pass the benefit of the duty cut to our customers," said H Yamada, president and CEO, HSCIL.