January 2026 is shaping up to be a solid month for sedan buyers in India. If you’ve been sitting on the fence about a new car, this might be your moment. Volkswagen and Honda are both rolling out some genuinely big discounts to kick off the year, and we’re talking savings north of one lakh rupees on certain trims.
Let’s break down what’s actually on offer and whether any of these deals are worth jumping on.
Volkswagen Virtus: Entry Trims Get the Biggest Cut
Volkswagen is being pretty aggressive with the Virtus this month. The standout here is the Comfortline manual transmission variant, which comes with a discount of up to Rs 1.26 lakh. That’s the biggest slice you’ll find across the lineup.
Move up to the Highline Plus automatic and you’re looking at Rs 1 lakh off. The GT Line AT gets Rs 80,000 in benefits. Not too shabby.
Now, if you’re eyeing the sportier GT Plus Chrome DSG or GT Plus Sport DSG, the discount shrinks to just an exchange bonus of Rs 30,000. Both of these run the 150hp 1.5-litre turbo-petrol engine paired with a seven-speed dual-clutch automatic. And here’s the catch: if you want the 1.5-litre manual versions, there’s nothing on the table right now. No discounts at all.
The Virtus is priced between Rs 12.43 lakh and Rs 22.48 lakh on-road in Mumbai. With these deals, the lower and mid-spec automatics suddenly look a lot more accessible.
Honda City: Benefits Stack Up Across the Range
Honda isn’t holding back either. The City’s SV, V, and X automatic variants are getting the fattest package, totaling up to Rs 1.17 lakh.
Here’s how it breaks down: exchange bonus of Rs 40,000, cash benefits up to Rs 30,000, loyalty benefits at Rs 4,000, corporate discount of Rs 5,000, and a self-employment discount of Rs 10,000. On top of that, there’s a Rs 28,700 reduction on the seven-year extended warranty. That warranty discount is actually meaningful if you plan to keep the car long-term.
Manual variants get similar treatment, though the extended warranty discount drops slightly to Rs 27,300. The top-spec ZX trim sees a Rs 20,000 cash discount, plus warranty savings of Rs 16,000 for the manual and Rs 17,000 for the CVT.
And across all City variants, there’s a scrappage incentive of up to Rs 20,000 if you’re trading in an old car. That could help if you’ve got something aging in the driveway.
Discount Comparison: Virtus vs City
| Model | Variant | Maximum Discount | Key Benefits |
|---|---|---|---|
| Volkswagen Virtus | Comfortline MT | Rs 1.26 lakh | Highest total discount |
| Volkswagen Virtus | Highline Plus AT | Rs 1 lakh | Best automatic deal |
| Volkswagen Virtus | GT Line AT | Rs 80,000 | Sporty trim savings |
| Honda City | SV/V/X AT | Rs 1.17 lakh | Includes warranty reduction |
| Honda City | SV/V/X MT | Rs 1.17 lakh | Similar to automatic |
| Honda City | ZX (all) | Rs 20,000 cash + warranty | Lower discount on top trim |
Which One Should You Actually Consider?
If you’re shopping purely on value, the Virtus Comfortline MT is hard to ignore at Rs 1.26 lakh off. You’re getting a well-built German sedan with solid road presence at a price that’s now notably lower. The Highline Plus AT also makes sense if you want more kit and an automatic gearbox.
The Honda City is the safer, more predictable choice. It’s got a proven track record, decent resale value, and a CVT that’s smooth for city traffic. The warranty discount is a nice touch if you’re thinking long-term ownership. The SV or V automatic trims with the full Rs 1.17 lakh benefit package are probably the sweet spot.
Between the two? The City will likely outsell the Virtus in India. Honda’s got stronger brand trust here, better service network reach, and the City nameplate has been around forever. But the Virtus has a more premium feel and better highway stability thanks to its slightly heavier build and stiffer suspension tuning.
Is It Worth Buying Now?
If you’ve been planning to buy a sedan anyway, January is a good time to move. These discounts won’t stick around forever, and once the financial year ends in March, offers tend to tighten up again.
Just make sure you’re not buying purely because of the discount. Test drive both, check the features you actually need, and negotiate hard at the dealership. These advertised discounts are maximums. You might not get every single benefit unless you tick all the boxes for exchange, loyalty, corporate tie-ups, and so on.
But yeah, if the numbers work for you, lock it in before February rolls around.
Monojit Paul is the founder and editor of techautohub.com. He covers India’s automotive industry, focusing on new launches, cars, bikes, and market trends.
