Maruti Udyog Ltd announced a cut in prices
New Delhi, Feb 28 UNI) The country's largest car-maker Maruti Udyog Ltd today (Feb 28, 2006) announced a cut in prices of its small car segment, ranging between Rs 13,000-Rs 22,000 across five models, following an 8 per cent cut in excise duty on small cars in the Budget 2006-07.
"Maruti prices will go down from tomorrow," Maruti Udyog Managing Director Jagdish Khattar said, soon after Finance Minister P Chidambaram announced that excise duty on small cars would come down by eight per cent to 16 per cent from the earlier 24 per cent.
The price of the popular Maruti 800 would be reduced by around Rs 13,000, the hatchback Alto by Rs 15,000, and the WagonR between Rs 15,000 and Rs 22,000, Mr Khattar said.
"Although the company would incur a loss of Rs 30-40 crore, due to the excise duty cut, it would be beneficial for the auto sector in the long run," Mr Khattar was quoted as saying to a television news channel.
The auto major, in which Japan's Suzuki Motors owns 54.2 per cent stake, had hiked the prices of all its models by 0.5 per cent to 3.5 per cent in January 2006, citing higher input costs.