New Delhi (IANS) Following the announcement of reduction in corporate taxes by Finance Minister Nirmala Sitharaman, Indias largest car company, Maruti Suzuki on Wednesday announced an immediate Rs 5,000 cut in prices of its bestselling cars.
These popular models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross.
With the market leader cutting car prices, other manufacturers are expected to follow suit.
There had been skepticism in the auto industry whether a cut in corporate taxes will lead benefit consumers. The government has yet not lowered GST rates for automobiles despite persistent demands by the auto industry.
The company has decided to reduce the price by Rs 5,000 on ex-showroom price. The new prices will be applicable from Wednesday across the country.
This reduction of price will be over and above the current promotional offers for the company's vehicle range, according to a company statement.
Welcoming the government's initiative to revive demand in automobile industry, Maruti Suzuki India on Wednesday announced to "proactively and voluntarily share the benefits of corporate tax reduction with its customers".
Maruti said it is optimistic that the price reduction will bring down the cost of acquisition especially for the entry-level customers.
This announcement around the festive season will help boost customer sentiment and revive the market to create demand.