At present, H.E.A.Ds are operational in Delhi, Mumbai, Chennai, Chandigarh, Ludhiana, Jalandhar, Vadodara, Coimbatore and Jaipur. Honda City cars will soon be available in Hyderabad, Pune, Indore and Bangalore, followed by Ahmedabad, Cochin, Calcutta and Lucknow, a company source said.

The company witnessed around 45 per cent drop in its sale of Honda City cars during the month of July, as compared to its sales figure for the month of June. The company sold 656 cars during July, compared to 1,195 cars during June, 859 during May and 661 during April. So far, the company has sold 13,040 units since its launch.

The company sources denied that the recent price hike, which was effective from July 1, is the reason behind the drop in sales. "More cars were sold during themonth of June in anticipation of a price rise. Above that, the seasonal factor has played a role in last months sales figures," they say.

Delhi is the leading market for Honda City. It accounts for about 30 per cent of the all-India volumes. Over 4,000 Honda City cars have been sold in the Capital since January 1998. The other major markets for the car are Mumbai, Chandigarh and Chennai.

The company had hiked the price of all its versions last month after the hike in excise duty in the Budget. The ex-showroom price of Honda City 1.3 Lxi is Rs 5,90,001, that of 1.3 Exi Rs 6,48,000, 1.5 Exi is Rs 7,38,000, 1.5 Exi-S Rs 7,73,001 and 1.5 Exi (Automatic Transmission) Rs 7,98,000.

Honda Siel Cars India is a joint venture of Honda Motor Company Japan and Siel Limited India. The company has invested Rs 450 crore so far. Its authorised and paid up equity is Rs 180 crore.

The companys plant is located in Greater Noida, Uttar Pradesh. It has an installed capacity of 30,000 cars per annum.