Tata Motors said it has cut prices of its hatchbacks and sedans by INR29,000-50,000 rupees (US$530-$910), in a bid to attract customers in a market that is on course in the current fiscal year to post the first decline in annual sales in a decade.

The automaker raised prices of its sport-utility vehicles (SUVs) – the only bright spot in the Indian car market in recent months – by up to INR11,000, a spokeswoman said.

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The increase in prices of SUVs, after factory-gate taxes, will be as much as INR35,000 rupees, she told Reuters.

The latest government budget has hiked taxes on SUVs from 27% to 30%

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