New Delhi, 02 March 2008: Following market leader Maruti Suzuki's price reduction for its models in the wake of the excise duty and Cenvat reduction post-budget, competitors Tata Motors and Skoda have announced price cuts for their leading vehicle models. 

Tata Motors have cutback prices for their small cars, buses and trucks with immediate effect. The reduction in the price of its flagship hatchback Indica is in the range of Rs. 8,500 - Rs.14,600, and that of the newly added Indigo Compact Sedan will be in the range of Rs.12,700 - Rs.15,300. Tata's buses and trucks will now cost two per cent lesser. However, the company has stated that it is still working out the exact range of price reduction for its buses and trucks, which will be announced soon.

Skoda India has also announced a price reduction of up to Rs.18,000 across all Skoda Fabia diesel variants. The company stated that it has achieved sales of 1,303 units in February, thereby registering a growth of 102% as against 644 units sold in the same time the previous year. This includes 524 units of its premium hatch Skoda Fabia.

Competition in the passenger car segment is expected to heat up with other car makers also in the process of cutting down prices, and drive home early advantages.