Indian automotive giant, Tata Motors is planning to reduce the price of its models by between Rs. 29,000 and Rs. 50,000 in an effort to boost demand in Indian market.

The company, however, is also planning to increase the price of its sport-utility vehicles (SUVs) by between Rs. 20,000 and Rs. 35,000 in order to absorb the higher costs and an increase in excise tax. The new prices have come into effect from Saturday but the Mumbai-based auto maker is yet to announce the changes in prices officially.

The company recorded a fall of 62 per cent in domestic sales to 10,613 vehicles during the month of February. Demand in the Indian auto market has remained weak throughout the financial year due to increasing cost of fuel and high cost of borrowing in the country.

A company spokesman said that the company is planning to cut prices even as it is facing higher input costs in the weak auto market in India. The company would cut prices of its hatchbacks and sedans including Indica range, Manza as well as the Indigo sedans. The price of Nano minicar will remain the same in the market.

On the other hand, the company has increased the price of Sumo, Safari and Aria models by between Rs. 7,500 and Rs. 11,000 to offset higher costs. The spokesman said that after including the taxes, the increase would be between Rs. 20,000 to Rs. 35,000 to the consumers.