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Small car is cheaper now

Small car segment has been in upbeat mood since the beginning of 2008. Tata’s Nano, world’s cheapest small car has given the hope that it would transform the auto industry and made the entire world to realize India’s potential auto industry.
Before the introduction of Nano on the Indian roads, the central government has brought smiles on middle class families and ensured that they can’t wait till Nano’s official launch by announcing a huge reduction in the Excise duty on small cars in union budget.

Auto industry has been waiting to get such bonanza from the government over the years. The Excise duty has been reduced to 12 percent from 16 percent this year. When auto Industry was waiting for booster from the past two-three years, reduction of excise duty has virtually come as boon for auto industry.

The buyers of small cars in India are usually middle class people. For them, price is more important than the car’s look, appearance and performance. People who were associated with two-wheelers have changed their minds to own a car after they witnessed Nano at auto expo.

Shelling out Rs 1 lakh to 1.50 lakh to own a small car is not so big deal for most middle class families now. The reduction in excise duty has tempted many of the Nano lovers who are waiting patiently for another half a year to go for buying small cars like Maruti 800, Alto instead of waiting so long to take the advantage of excise duty reduction.

But car manufacturers have not made any delay and resorted immediately to luring in people waiting for Nano and to own small car at reasonable price by announcing huge reduction in the price of their small cars as per excise duty cut. Maruti which has always been in the forefront to please the buyers with their cars reduced the prices of its model in the small car segment by Rs 6000 for Maruti 800 and Rs 18000 for Swift diesel version.

Tata which has created flutter in auto industry after Nano’s introduction slashed the prices of its passenger cars to take the benefit of excise duty to the common man. The prices of its hatchback Indica and Sedan Indigo is also cut down by Rs 15,300. As a result of it, the prices of Indica range has naturally come down ranging from Rs 8,500 to 14,600. Tata has also not spared its newly launched IndigoCS as it got reduced in a range of Rs 12,700 to Rs 15,300.

Hyundai motors also joined this race of cutting prices to attract small car buyers and reduced prices ranging from Rs 11,000 to Rs 16,000 for its different variants. Not only Indian car manufacturers are eager to pass on the benefit of excise duty cut to buyers, but foreign car manufacturers too showed their commitments towards buyers by opting for reducing prices of their models.

Skoda, luxury car maker reduced Rs 18,000 on diesel version of its hatchback Fabia, Fiat Motors India also announced a reduction of Rs 12000 on it flagship model Palio Stile and Ford has also reduced the price of Fusion diesel version by Rs 22,000. The reduction in small car prices came with immediate effect.


At last, the excise duty cheered up the middle class families by encouraging them to buy a small car without waiting for Nano.
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