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Neha Kaushik

Consumers gain little as discounts are withdrawn

New Delhi , March 4

Consumers who had postponed car purchases till Budget in anticipation of price cuts may be a bit disappointed. For despite several automobile companies announcing price cuts ranging from Rs 11,000 to Rs 25,000 following an 8 per cent reduction in excise duty on small cars in the Budget, car buyers are finding that they are paying the same amount as in February. Because the discounts being offered on compact car models in February to push sales have been withdrawn following the price cuts.

"So, effectively a compact car model could have been brought at a similar price before the Budget as after it," a Delhi-based dealer points out.

At most, the advantage post-Budget for the end consumer could be about Rs 2,000-4,000 on certain models despite price cuts of Rs 11,000-25,000. This is because discounts on compact cars were earlier ranging from Rs 10,000-22,000.

In fact, many companies had come out with advertising campaigns last month with a promise of selling cars at the same or lesser prices `as after the Budget'. "This had helped to maintain the interest level among consumers, as car sales take a dip before every Budget," a dealer said. There had been increased expectation among consumer of car prices coming down after the Budget.

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