With excise duties slashed in the interim budget, down from 12 to 8 percent for small cars, two-wheelers and commercial vehicles, from 24 to 20 percent for mid-size saloons and from 30 to 24 percent for SUVs -- taxed the heaviest last time round -- some carmakers have already started responding and have announced a lowering of prices across entire product ranges.
According to reports, Maruti will reduce prices of its cars. However, the new price list is yet to be released.
Mercedes-Benz India has also declared a price revision and the C-class Avantgarde edition will now cost Rs 39.35 lakh, down from Rs 39.90 lakh. The mammoth GL-class SUV will now cost Rs 2 lakh less.
India's currently top ranking luxury carmaker, Audi, is also reportedly bringing prices down of its top-end Q7 SUV by a little more than Rs 3 lakh, from Rs 82.11 lakh to Rs 78.28 lakh. The base Q7 (assembled here) is now likely to be offered for Rs 58.34 lakh.
In the two-wheeler sector, a reduction in duty from 12 to 8 per cent is likely to lead to similar price cuts.
Honda Motorcycles and Scooters India has just announced that it will pass on the full benefit of 4 percent excise duty reduction, starting from Rs 1,600 on the Dream Neo and going up to Rs 7,600 on the CBR 250R.
DSK-Hyosung has also issued a statement saying that it will pass on the benefits to customers and it's likely that the range could become cheaper by Rs 10,000-12,000.
Update
Nissan
Japanese auto giant Nissan has issued a statement saying its cars like the Micra, Micra Active and Sunny will become cheaper by 4 percent. SUVs like Terrano are expected to be around 6 percent less expensive. Large sedans like the Teana will enjoy benefits in price by 3 percent.
Hero MotoCorp
Hero MotoCorp has also announced that its two-wheelers will become cheaper by 4-6 percent with the maximum benifit being upto Rs 4,500.
Hyundai
Hyundai has reduced prices of all its models ranging from Rs 10,000 to Rs 1,35,000 across the range with immediate effect.
Volkswagen
Prices for the Volkswagen Polo have been reduced by Rs 18,000-Rs 31,000. For the Vento, prices have been reduced by Rs 14,500-Rs 27,000. Jetta prices have been reduced by Rs 38,000-Rs 51,000.
Mahindra
Mahindra has slashed prices of all its models ranging from Rs 13,000 to Rs 49,000 while the SsangYong Rexton SUV sees a price cut of Rs 92,000