Tata Motors, India's largest automaker by revenues, has slashed the prices of its hatchbacks and sedans by up to Rs 50,000, to stimulate sagging sales.
The price cut comes as domestic passenger vehicle volumes of the company declined to 10,613 units in February, a fall of 62 per cent over the corresponding period last year. February sales were the lowest monthly volume in more than six years.
The Indica hatchback series now comes with a cut of Rs 29,000 and the Manza sedan is cheaper by Rs 50,000. The new prices are effective March 1. Prices of the Nano remained unchanged.
"As the current market is weak, we want to offer attractive prices to our customers," said a company spokesperson, referring to the price cut.
Almost all automotive companies have been offering discounts and benefits since the past six months. But this is the first direct price cut from a company in the year.
Tata Motors has been under pressure due to the competition and weak buying sentiment in the market. Its aging product portfolio has been challenged by Toyota, Honda, Maruti Suzuki and Hyundai.
Simultaneously, the Mumbai-based company increased prices of utility vehicles such as the Safari, Sumo and Aria. An increase of Rs 7,500-11,000 has been made on these models. The hike was in addition to the increase brought in by the excise duty change.
Consumers will now have to pay between Rs 20,000 and Rs 35,000 more for a utility vehicle of Tata Motors. Last Thursday, Finance Minister P Chidambaram increased the excise duty on sports utility vehicles from 27 per cent to 30 per cent. The increase is not applicable on vehicles registered as taxis.
- Maruti Suzuki
- Hyundai Motor
- Mahindra & Mahindra
- Tata Motors