GM slashes car prices by up to Rs 49,000 across models

GM slashes car prices by up to Rs 49,000 across modelsGeneral Motors India has slashed prices of its various models by up to Rs 49,000, thanks to the excise duty cuts announced by Finance Minister P Chidambaram in the interim budget for FY2014-15.

P Balendran, Vice-President of GM India, said the company reduced prices across models by Rs 12,000 to Rs 49,000.

GM India sells hatchbacks Spark, Sail, sedan Sail U-VA, premium sedan Cruze, multi-utility vehicles Tavera, Enjoy and premium sports utility vehicle Captiva.

The Indian arm of the U. S.-based car manufacturer also unveiled refreshed version of Chevrolet Beat. The base variant costs Rs 3.98 lakh, while the top model has been priced at Rs 6.21 lakh (ex-showroom Chennai).

Speaking about the price cuts, Balendran said, "This is only a short-term measure. The excise duty cut is going to be applicable till June 20. Even today the market sentiments are bad. The volume numbers are down even in this segment."

GM India is not the first car maker that has reduced prices of its models. Market leader Maruti Suzuki India, Mahindra & Mahindra, Hyundai Motor India and Honda Cars India have also slashed prices of their cars.

The price cuts followed decline in excise duty from 12 per cent to 8 per cent for finished goods like small cars, scooters and motorcycles. Excise duty on large cars and SUVs was slashed from 27 to 24 per cent and 30 to 24 per cent, respectively.