A day after leading car makers Maruti Suzuki and Hyundai Motor decided to cut vehicle prices in the wake of a reduction in taxes, Mahindra Renault on Tuesday said its Logan sedan will be offered at a discount of Rs 60,000.
The price cut will be uniform across all the nine variants of the mid-sized sedan and will come into effect from Wednesday.
Nalin Mehta, chief executive officer, Mahindra Renault, said, "We are offering a uniform discount of Rs 60,000 on the car from tomorrow, which is a mix of direct cash discount from us and the benefit arising out of the Cenvat rate cut." The government on Sunday announced a 4-per cent cut in the central value-added tax (Cenvat).
Economic package: What's in it for you
The base variant of the car, 1.4 GL (petrol), which is currently priced at Rs 4.72 lakh (ex-showroom Mumbai), will now be available at Rs 4.12 lakh. Similarly, the base variant of the car, 1.5 DLE, will be priced at Rs 5.15 lakh as against its current price of Rs 5.75 lakh. Customers can also avail themselves of a bonus of Rs 10,000 under an exchange offer, which will be in addition to the Rs 60,000 cash discount.
This will price the base variant of the Logan at close to Rs 4 lakh. The discount rates on the Logan sedan will be till December 27, the company said. Of late, Logan sales have received a battering due to the ongoing slump in the industry, largely triggered by lack of adequate finances.
In November, the company managed to sell just 300 units of the car as against a total of 1,561 units sold in the same month a year ago, a drop of more than 80 per cent. In the April-November period, the company sold 10,584 units, a drop of nearly 35 per cent as compared to 16,268 units sold in the corresponding period a year ago.
Maruti Suzuki had cut prices in the range of Rs 6,500-23,000 on its models except on the Vitara sports utility vehicle. Korean car major Hyundai too had slashed car prices on models ranging from Santro to Sonata by Rs 8,000-Rs 44,000.
Global meltdown: Complete coverage
