A number of Indian carmakers, including Maruti, Hyundai, Mitsubishi and Toyota have cut prices by 3-3.5% this week on the back of an Indian government tax change.
Manufacturers have passed on the benefit of a 4% excise duty reduction announced on Sunday. Car prices in India were heading downwards even before the duty cut.
“We have passed on the full benefit of the excise duty reduction to customers. The new prices come into effect from midnight of December 7, 2008 and will be clubbed with the existing cash discounts and rebates offered by the company,” a Maruti spokesman told The Economic Times.
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Carmakers in India have slashed prices as the once booming industry struggles to maintain sales amid a slower economy and tighter credit.
