New Delhi, Feb. 19: India’s leading car makers today cut the prices of their models to the full extent of the duty cuts announced in Monday’s interim budget, expecting a sales surge in an industry that suffered nearly a double-digit negative growth in 2013.
Price cuts were done by Maruti Suzuki, Hyundai Motor, Honda Cars, Nissan Motor, Volkswagen, Mahindra & Mahindra and Fiat.
The entire benefit of the excise duty cut is being passed on to customers for the full range of models, Maruti said in a statement.
Hyundai also said the full benefit would be passed on to all its models — from small car Eon to premium sports utility vehicle Santa Fe.
Honda Cars, too, announced a reduction with effect from today.
“The reduction in duty will give the necessary boost to consumer demand and fuel growth in the auto industry. We are happy to pass on the benefit of the duty reduction to our customers,” Jnaneswar Sen, senior vice-president, marketing and sales, Honda Cars India Ltd, said.
Tata Motors and General Motors India said they would pass on the benefits to consumers and were currently working on the details of the exact reductions.
Nissan Motor India’s price reduction by up to six per cent has come into effect from February 18.
“The price reduction by Nissan is in the range of four to six per cent and will apply to the Micra Active, Micra, Sunny, Evalia, Terrano and the Teana,” Nissan Motor India said.
Volkswagen cut prices of its cars in India in the range of Rs 14,500 and Rs 51,000. Mahindra said the price reduction for its passenger vehicles was between Rs 13,000 and Rs 49,000. The company also lowered prices of its premium SUV Rexton by up to Rs 92,000.