Cars: Auto, Maruti Suzuki India, Hyundai Motor India and Toyota Kirloskar Motor, Society of Indian Automobile Manufacturers

Stimulus effect: Car companies cut prices across models

A day after the government announced four percent cut in central value-added tax (Cenvat), auto majors in the country, including market leader Maruti Suzuki India, slashed prices of their vehicles to pass on the benefit to consumers.

Maruti Suzuki said in a statement that the price of its top-end SX4 sedan will go down by Rs.23,000 to Rs.760,542, while the small car Maruti-800 will be cheaper by Rs.6,500 at Rs.193,561. The company added that all its 11 car models will be cheaper 'immediately'.

Hyundai Motor India and Toyota Kirloskar Motor have also announced price cuts. Hyundai Motor, the second largest car maker in the country, has cut the prices of its flagship model Santro (GL) by Rs.8,834 (non AC), while the top-end luxury car Sonata will see a drop of Rs.44,792.

The company's new sensation i10 will be cheaper by Rs.11,247 and Rs.18,381 depending on its models. According to an official, the discounts/offers announced by the company earlier will continue till Dec 15 this year.

A few days back the company had announced a discounted price of Rs.299,000 for its Santro (GL) model, and offered free insurance and accessories on some of its models to boost sales in a depressed market.

Toyota Kirloskar said the price of its popular multi-purpose vehicle would be reduced by up to Rs.32,780, while high-end models like Corolla would be cheaper by Rs.40,750.
Industry body Society of Indian Automobile Manufacturers (SIAM) Sunday welcomed the monetary and fiscal measures taken by the government to pump prime the economy.

December 8, 2008
Source: Economic Times
URL: http://economictimes.indiatimes.com/News/News_By_Industry/Auto/Automobiles/Stimulus_effect_Car_companies_cut_prices_across_models/articleshow/3810145.cms