Following the Finance Ministry's decision to reduce corporate tax, Maruti Suzuki India on Wednesday announced a cut of up to Rs 5,000 in prices of its entry-level cars to push sales ahead of the festive season of Navratri and Diwali.
Prices of the company's models of Alto K10 and 800, Celerio, diesel variants of Swift, Dzire, Vitara Brezza and S-Cross were slashed.
In a press release, the country's largest automaker said that the new prices will be applicable from 25 September.
"This reduction of price will be over and above the current promotional offers for the Company's vehicle range. The company is optimistic that the price reduction will bring down the cost of acquisition especially for the entry-level customers. This announcement around the festive season will help boost customer sentiment and revive the market to create demand," it further said.
The automaker is already running promotional offers on cars with discounts ranging from Rs 40,000 to Rs 1 lakh on different models.
Following the announcement, shares of Maruti Suzuki fell sharply by 4.11 percent to Rs 6,710 on NSE.
Earlier this week, on Monday, Maruti Suzuki India's Chairman RC Bhargava told Reuters that it expects its car sales in September to be higher than the previous month.
In August, the country's largest automaker saw its domestic sales fall by 34.3 percent, one of its most significant decline in monthly numbers. The fall came amid a slowdown in the entire auto-sector. Sales of the industry fell for the tenth straight month in August.
On hopes of sales revival following the corporate tax rate cut and confidence from the company's chairman, shares of the company crossed the Rs 7,000 mark on Tuesday, for the first time since 27 May.