Auto giant Maruti Suzuki has decided to slash prices of passenger cars following the booster package announced by government to stimulate economic growth. Auto sector is satisfied over the measures taken by government in its recently announced fiscal package.

Government slashed the Central Value Added Tax (Cenvat) rate as a part of package and expressed hope that companies would pass benefits to customers.

Maruti would cut prices of cars by 3 per cent to over 4 per cent to meet its annual sales target. Prices of its largest-selling model, the Alto, would come down by Rs 8000 while quantum of cut on other models is likely to be announced on Monday. The chairman of the country's largest car maker, Maruti Suzuki, R C Bhargava said that the price cut would be in addition to the discounts offered by car maker on its various models.
 
Other Auto Companies are likely to revise prices in line with tax cut by government. Mumbai-based Mahindra & Mahindra said that it would revise prices of Scorpio and Bolero. President of (automotive sector ) M&M, Pawan Goenka said that the government's move would definitely boost demand and company may announce up to 4 per cent cut on the premium segment very shortly.
 
Hyundai and General Motors would also follow the suit. However, vice-president of GM India, P Balendran asked for more interest cut to make auto loan cheaper. Chennai-based Ashok Leyland and Tata Motors would also revise prices following recent duty cut.