More carmakers cut prices

12 December 2008

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.