Chennai: General motors have decided to reduce the prices of various models of cars from Rs. 12000/ to Rs. 49000/. This reduction in price is in accordance with the reduction in excise duty of cars.

The excise duty has been cut down to 8 per cent from 12 per cent for small cars, scooters, motorcycles and commercial vehicles. For The SUV model cars the excise duty has been reduced to 24 per cent from 30 per cent. The reduction is from 24 percent to 20 percent for mid sized cars while for large cars the reduction is from 27 percent to 24 percent.

General Motors India Vice-President P Balendran said that the slash in excise duty would marginally improve sales of vehicles and the industry is expected to get boosted only when a new government assumes office after the general election.