In the wake of excise duty cut for the big cars in the 2009-2010 Union budget, major car manufacturers Honda Siel Cars India and Ford India slashed the prices of some of their models up to Rs 6,000 on Tuesday.
Ford announced that it will slash Rs 6,000 on its sport utility vehicle, Ford Endeavour, and Honda said that the price of its luxury sedan, Accord, and SUV, CR-V, will be reduced by Rs 5,000.
"The price reduction of Rs 6,000 will be applicable to all three variants of the Endeavour," said Ford India in a statement.
"The duty reduction has been a welcome step taken by the government though the reduction is limited only to large cars. We are pleased to pass the benefit of the reduction on the Endeavour to the consumer in its entirety," said Tim Tucker, Ford India Vice-President (Sales).
Hindustan Motors was the first car maker to reduce the price, by Rs 6,000, of its partner Mitsubishi's Outlander, Pajero, and Montero. While Tata said that it will announce its plans soon, GM India, BMW, and Toyota Kirloskar had said the benefits of the excise duty will be available to the customers. But Honda had previously announced that it would not cut prices, because of the depreciation of Indian rupee in the global market
The budget also proposed to reduce the additional excise duty, by Rs 5,000, on big cars with an engine capacity of 2,000 cc and above.