The country's biggest car makers, Maruti Suzuki India (MSI), Hyundai Motor India and Mahindra & Mahindra Ltd (M&M), today cut prices after excise duty on automobiles was reduced in the Interim Budget by Finance Minister P. Chidambaram.
While Maruti Suzuki India's price cuts range between Rs 8,502 and Rs 30,984 across its models, Hyundai has slashed prices by between Rs 10,000 and Rs 1,35,300.
The entire benefit of the excise duty cut is being passed on to customers for the full range of models, MSI said in a statement.
Hyundai Motor India Ltd (HMIL) also said customers would get the full benefit of the excise duty reduction. The price cut applied to all the models, from Eon to Santa Fe.
"The reduction in excise duty would substantially reduce the prices, making cars more affordable. The quantum of benefit will vary from Rs 10,000 to Rs 1,35,300 across all the models," HMIL Senior Vice President, Sales and Marketing, Rakesh Srivastava said.
Mahindra & Mahindra cut prices of its passenger vehicle portfolio ranging from Rs 13,000 to Rs 49,000. The company will also reduce prices of its premium SUV, the Rexton by up to Rs 92,000. The reduction is effective immediately, M&M said in a statement.
Commenting on the price reduction, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra Ltd, said, “We are confident that the reduction in prices by Mahindra as well as other auto companies would provide the much needed fillip to the auto industry.”
On February 17, Chidambaram cut excise duty to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles; 24 per cent from 30 per cent for SUVs; 20 per cent for mid-sized cars from 24 per cent and 24 per cent for large cars from 27 per cent.