The country's biggest carmakers, Maruti Suzuki India (MSI) and Hyundai Motor India, on Wednesday cut prices after excise duty on automobiles was reduced in the interim budget.
While MSI'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.
"The reduction in excise duty would substantially reduce the prices, making cars more affordable," said Rakesh Srivastava, senior vice president, sales and marketing, HMIL.
Mahindra & Mahindra also announced reduction in prices of its passenger vehicle portfolio ranging between Rs 13,000 and Rs 49,000.
The company said it will also reduce the price of its premium sports utility vehicle (SUV), Rexton, by up to Rs 92,000.
"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. The prices of our range of commercial vehicles are also being reduced," said Pravin Shah, chief executive, automotive division, Mahindra & Mahindra.Other automobile manufactures such as Nissan said it will also pass on the full benefit of recent cuts to vehicle duty which range from four to 6%.
"The reduction in excise duty is a welcome move towards revival of the Indian automobile industry. We are confident this will make our products more accessible and drive growth across the range," said Kenichiro Yomura, president, Nissan India Operations.
Two-wheeler manufacturer Hero MotoCorp has also passed on the excise duty benefit to customers ranging from 2%-5%.
"We have decided to pass on the entire benefit of the excise duty cut to our customers. We have judiciously spread out the cut across our product portfolio ranging from 2% going up to 5% with the maximum reduction being Rs.4,500," the company said in statement.
Luxury automobile manufactures like Mercedes-Benz and Audi have also cut prices. Earlier, auto makers like General Motors, Tata Motors and Volkswagen Passenger Cars said they would pass on the excise rate cut benefit to customers.
In the interim budget 2014-15 speech finance minister Chidambaram reduced the central excise on small cars, scooters/two-wheelers from 12 to 8%.
He also reduced the central excise from 30% to 24% on SUVs, and medium segment sedans from 27-24% to 24-20%, respectively.