A day after slashing prices of its small cars, market leader Maruti Udyog Limited has cut the price of its premium sedan Baleno by Rs 8,000 with immediate effect.

The price cut follows a proposal to lower custom duties in the Union Budget presented on Tuesday.

With the cut, the ex-showroom price (Delhi) of Baleno Lxi comes down to Rs. 5,75,173 from Rs 5,83,173 and that of Baleno VXi to Rs 6,57,556 from Rs 6,65,556, a drop of Rs 8,000 in each variant.

The company, however, said its other models like Esteem, Swift, Versa and Gypsy have a very low level of import content and hence their prices will not change.

Baleno has higher import content and benefits from the reduction in custom duties. The company has decided to pass on this benefit to the customer, a company statement said.

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