In response to the government’s move to lessen excise duty, car manufacturer Ford India has cut the prices of its models by up to Rs 54,000.

In a statement, Ford India said that the price of the company’s premium hatchback ‘Fusion’ has been slashed by Rs 18,500.

Similarly the mid-sized sedan Fiesta’s cost was cut between Rs 21,000 and Rs 25,000, whereas that of sports-utility vehicle 'Endeavour' has been reduced by Rs 47,000-Rs 54,000.

Michael Boneham, Ford India President, stated, “We are supportive of the government's action on reduction of CENVAT and see this as a welcome move.”

“This will bring some relief to the Indian automotive industry in general. With that in mind we will be passing on the benefit of the duty cut to our customers,” Boneham added.

Earlier this week, the Government cut Central Value Added Tax by 4 percent to 10%, making room for auto makers to diminish prices of vehicles.