Almost all car manufactures have slashed prices of their various car models by 3-3.5%. The price cut has come after four percent reduction in excise duty announced by union government in the recently announced economic booster package. Maruti, Hyundai, Mitsubishi and Toyota have passed excise duty cut to customers in almost all categories. Prices of small car segment like M-800 and Santro have come down by at least Rs 6,500. Hyundai dropped prices up to Rs 44,792 on its top-end Sedan Sonata and Rs 16664 for the i10 hatchback variants.

Newly launched model SX4 can be purchased by paying Rs 24,000 less than actual amount while Toyota Corolla Altis is cheaper around Rs 40,750. Prices of imported vehicles like Toyoto Prado and Mitsubishi Modero has declined by around Rs 1.20 lakh respectively following recent duty cut by government.

Alto is cheaper by around Rs 9,000 and A-Star is cheaper by Rs 16,664. However, prices have not been revised for the imported SUV, Grand Vitara. Marutu Suzuki in a statement said, "We have passed on the full benefit of the excise duty reduction to customers. The new prices come into effect from midnight of December 7, 2008 and will be clubbed with the existing cash discounts and rebates offered by the company."

The recent price cut announced by various car makers would help marginally to increase demand as banks are reluctant to give loan and interest rates are still high.