New Delhi: Maruti Suzuki, Hyundai Motor, Mitsubishi and Toyota Kirloskar have cut prices between 3 pe cent and 3.5 per cent following the announcement of a 4 per cent cut in Cenvat (excise) on cars by the union government on Sunday (See: Centre cuts excise by 4 per cent; unveils Rs30,700 crore stimulus).
Almost first off the block in announcing a reduction in prices, India's largst passenger car maker, Maruti Suzuki has cut the price of its flagship Alto by around Rs9,000 and of the newly-launched hatchback A-Star by Rs 16,664.
The company has also cut the prices of its entry model M-800 and Omni in the range of Rs6,593 to Rs8,032.
Prices of the Zen Estilo, Wagon R, Swift hatchback and Dzire, have been reduced between Rs11,167 and Rs21,784 for the top end variant of its entry level sedan, Dzire.
The sharpest cut in price is on Maruti's sedan SX4 which would now cost Rs 7.37 lakh compared with Rs 7.6 lakh earlier, a reduction of almost Rs 23,187. In a statement, the company said that the revised prices would be with effect from December 7.
The company has not made any changes in the price of the imported SUV, Grand Vitara.
''We have passed on the full benefit of the excise duty reduction to customers. The new prices come into effect from midnight of December 7, 2008 and will be clubbed with the existing cash discounts and rebates offered by the company,'' the Maruti spokesman said.
Keeping pace in pasing on the excise-cut benefits to customers, Hyundai Motors India, which was already offering big discounts on all its models, said it would continue to offer the existing scheme till 15 December, after which the new prices would be applicable.
The company said that according to the new excise duty structure, prices of its flagship model Santro would drop by Rs8,834 and the highest cut would be on its luxury car Sonata, which would become cheaper by Rs 44,792.
Hyundai's popular premium hatchback i10 would now cost Rs 11,247 less at Rs3.25 lakh as against its current price at Rs3.37 lakh.
Maruti and Hyundai do not plan to cut prices of imported models like Grand Vitara and Tucson.
Japanese car maker Toyota Kirloskar Motor has announced a cut in its prices ranging from Rs 23,000 to Rs 1.21 lakh across models. The company has cut the price of its premium SUV Innova by Rs23,980 to Rs32,780 (ex-showroom Delhi), while the price of the newly launched premium sedan Altis has been cut by Rs 40,750 less for the top-end variant. Camry and Prado too would be cheaper by Rs 76,130 and Rs 1.21 lakh respectively.
Toyota's other two vehicles Camry and Prado - imported as fully built vehicles - will be cheaper by Rs 76,130 and Rs 1.21 lakh respectively.
Hindustan Motors said that its sedan Lancer would now cost Rs 7.74 lakh from its earlier price of Rs 7.99 lakh, SUV Outlander would be at Rs 20.35 lakh from Rs 21 lakh and Montero at Rs 38 lakh from Rs39.50 lakh.
Bajaj Auto has announced an ex-showroom price reduction of upto Rs2,100 on its two-wheelers and up to Rs4,400 on its 3-wheelers. The company says prices have been reduced on vehicles billed to dealers with immediate effect.
Two-wheeler companies Hero Honda and TVS Motors will make announcements on price changes on Tuesday.
The auto industry feels that while the various measures by the central government will help boost demand in the industry the availability of finance still holds the key to issues facing the industry said Dilip Chenoy, director general of the industry body SIAM.