Maruti, Hyundai cut prices after excise duty reduction

The country's biggest car makers, 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. Hyundai Motor India Ltd (HMIL) also said customers would get the full benefit of the excise duty reduction.

The price cut applied to all the models, from Eon to Santa Fe. "The reduction in excise duty would substantially reduce the prices, making cars more affordable. The quantum of benefit will vary from Rs 10,000 to Rs 1,35,300 across all the models," HMIL Senior Vice President, Sales and Marketing, Rakesh Srivastava said.

On February 17, Chidambaram cut excise duty to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles; 24 per cent from 30 per cent for SUVs; 20 per cent for mid-sized cars from 24 per cent and 24 per cent for large cars from 27 per cent.