After the announcement of reduction of 4 percent CENVAT from the government, all major auto makers have announced slash in prices of their models. Tata Motors also announced its stimulus package over the weekend to boost its passenger car sales and pass on the excise duty benefit to its customers.
There has been a reduction in prices of about Rs. 12000 to Rs. 23000 on models of Indica and Indigo. On the other hand, SUVs like Sumo and Safari have witnessed a slash in their prices of about Rs. 16000 to Rs. 36000.
The company has also announced reduction in its prices for light commercial vehicles which get cheaper by Rs. 17000 to Rs. 23000. Medium and heavy commercial vehicles have become cheaper by Rs. 30000 to Rs. 60000. Tata Motors had been witnessing a continuous decline in its sales. It had also shut down its manufacturing plants amidst on-going credit crisis.