More passenger carmakers have announced reduction in car prices after the four percentage point cut in ad valorem Cenvat rates announced by the Central government a few days ago. (See: Maruti, Hyundai, Toyota, Mitsubishi, cut rates after excise cuts)
Ford India has cut prices in the range of Rs17,500 to Rs54,000 across various variants and models. The price of the popular sports utility vehicle Endeavour has dropped by up to Rs54,000 for the top-end version.
The price of the company's premium hatchback 'Fusion' has been reduced by Rs18,500 while mid size sedan Fiesta's price has been cut between Rs21,000 and Rs25,000.
Premium carmaker Skoda Auto India says it has cut the prices of all its models by Rs12,500 to Rs51,500. Skoda's entry-level Fabia hatchback will now be cheaper by Rs12,300.
Skoda is currently working on the details of price cut on various models, said Thomas Kuehl, a member of the board of directors of the company. Kuehl said the company is also in negotiations with the dealers for sharing the burden as they already have unsold inventory.
Skoda India had reduced production in August this year due to a slowdown in the market, but currently it was not producing less, Kuehl said.
The company is currently expanding its dealer network to 65 by the end this year from the current 56. Skoda will also launch two new models next year, apart from introducing new variants of the existing cars.
However, the company feels that the auto sector needs more sops. Skoda India board member (sales and marketing) Thomas Kuehl said, ''Further monetary and regulatory measures including credit availability at lower rates of interest and increased liquidity will be the key driver for further growth momentum,'' he said.
GM India has reduced prices of its vehicles by up to Rs30,500. The company has reduced the price of its small car Spark by Rs8,000-10,200 with immediate effect. The price of its hatchback Aveo U-VA has been cut between Rs12,000 and Rs16,000, while the price of the entry-level sedan Aveo has been cut by Rs16,700-Rs21,000.
The company's multi-utility vehicle Tavera would be cheaper by Rs16,500. ''These price cuts are in addition to the discounts offered by the company between Rs20,000 and Rs58,000 on our different models,'' P. Balendran, vice president, GM India, said Tata Motors has slashed the prices by up to Rs60,000 across its entire range of products.
It has cut the price of its Indica hatchback and Indigo family cars by between Rs12,000-Rs23,000. Safari and Sumo family will be cheaper by Rs. 16,000-36,000.
The price cut on its medium and heavy commercial vehicles range betwee Rs30,000 and Rs60,000, while on the light vehicles prices have been cut by Rs17,000 to Rs23,000.
Two-wheeler maker TVS followed Bajaj and Hero Honda in cutting prices as it slashed prices by Rs 700-2,000 across models with immediate effect. (See: Hero Honda, Bajaj Auto cut 2-wheeler prices)