Maruti, Santro cut prices after budget
Maruti announced a price cut ranging between Rs 13,000-22,000 across five models, while Santro's prices fell by Rs 23,000.india Updated: Feb 28, 2006 15:23 IST
Indian car market leader Maruti Udyog on Tuesday announced a price cut ranging between Rs 13,000-22,000 across five models, including 'M800' and 'Alto', following the cut in excise duty on small cars.
"Maruti prices will reduce from tomorrow," company managing director Jagdish Khattar said, immediately after the Finance Minister announced that excise duty on small cars will come down by eight per cent to 16 per cent.
The price cut on the popular 'M800' will be around Rs 13,000, hatchback 'Alto' by Rs 15,000, and on 'WagonR' between Rs 15,000 and Rs 22,000, Khattar said.
"We will incur a loss of Rs 30-40 crore because of this though it would be good in the long term," Khattar said.
The other two models where prices will be cut are the 'Zen' and 'Omni' van.
Excise cut: Santro prices to drop by Rs 23,000
Minutes after Finance Minister P Chidambaram announced an eight per cent cut in excise duty on small cars, car major Hyundai today announced a Rs 23,000 cut in prices of its flagship 'Santro' car.
"The Santro will cost Rs 23,000 less from tomorrow," Hyundai India President BVR Subbu said.
Welcoming the Finance Minister's announcement, he said it would give a fillip to the small car segment. "We hope that it leads to a significant growth in demand for small cars." Subbu said.
However, prices of other Hyundai models will remain unaffected, Subbu added.