New Delhi, March 1: Tata Motors today announced a price cut of up to Rs 23,500 on its hatchback Indica car following the 8 per cent cut in excise duty on small cars in the budget proposals. The excise duty has been cut to 16 per cent from 24 per cent.

“The Indica diesel will be cheaper by Rs 17,880-22,405 while the petrol variant will be lesser by Rs 17,000-23,558,” said an official.

Maruti and Hyundai have also announced substantial price cuts. While Maruti has cut the prices of M800, Alto, Omni van, Wagon R and Zen by as much as Rs 25,000, Hyundai slashed the prices of Santro by up to Rs 23,000.

Maruti has also slashed the prices of Baleno sedan by Rs 8,000. The ex-showroom price (Delhi) of Baleno LXi is Rs 5,75,173, down from Rs 5,83,173 and that of Baleno VXi is Rs 6,57,556 from the earlier Rs 6,65,556.

The peak import duty on cars have also been cut to 12.5 per cent from 15 per cent .

Honda Motors and General Motors have also reduced prices. Honda Motors has cut the prices of City by up to Rs 10,000 and that of Accord by Rs 15,000.

General Motors India has reduced the prices of Chevrolet Optra by up to Rs 20,000.