TVS Motors has cut prices of its motorcycles by up to 2,000 rupees, following a reduction in taxes over the weekend.
The overall range of price cuts varies between 700-2,000 rupees for all scooters and motorbikes. The revised prices have come into effect from Wednesday morning
The government on Sunday announced an across-the-board 4 percent cut in the central value-added tax on all products other than petroleum as part of a fiscal stimulus package to boost the economy.
TVS Motors’ move comes after larger rivals Hero Honda and Bajaj cut prices of vehicles.
Hero Honda reduced its prices by 1,000 to 2,000 rupees across its product portfolio. Bajaj cut product prices by up to 2,100 rupees on its motorcycles and scooters.
High interest rates and lack of financing has hit consumer demand for automobiles, including scooters and motorcycles.
TVS Motor has seen November vehicle sales fall 12.7 percent due to limited availability of retail finance and had also lowered its sales growth forecast for the full year to March 2009.