Dealers in Delhi have been flooded with enquiries about the price, booking, delivery schedules and cancellations. Customers have also demanded some accessories or compensation for the loss that they have suffered. Dealers have told buyers that the cars (with the price cut) will be available only from January 12, "so if the customer wants the vehicle with price cuts then he should be willing to wait".

A dealer in Delhi said that they had decided to share the difference of Rs 25,000 (the price cut for the 800cc) with the customer and the company also willing to chip in.

For instance, buyers are already getting a gold coin valued at around Rs 7,000, so that would be deducted from the difference (Rs 25,000). "Wehave told the customer that we are willing to share part of the loss."

Some dealers said that they have "consoled" their customers by telling them that they were getting the benefit of a gold coin (around Rs 7,000) and a reduced rate of interest (which works out to Rs 5,000). "It is complete chaos here and we are in a dilemma sorting out the mess," said dealers in Mumbai. According to them, the company is yet to officially intimate them of the revised prices for the 800, Omni E and its five-seater counterpart.

Despite this, bookings from Thursday were being made at the new prices with the reference material "being press clippings," a dealer said. The good news is that the number of telephone enquiries are growing by the hour, mostly for the 800 and Zen. Despite its new price, which makes it the cheapest four wheelers in the country, the Omni E has evoked little interest.

A leading dealer in the capital said that enquiries are mostly for the 800 model and Omni. Another added that they had received fivecalls since Thursday morning for the 10 cars that were booked. Customers who are having their cars financed are those who are demanding the new prices.

The major problem remains the cancellation of bookings for the 800. "There have been cases where some Zen customers want to switch over to the LX but we have assured them that their original choice is more contemporary," dealers said. The problem is that the loss incurred in transferring a 800cc booking to the new price will have to be borne by the dealer and not the company. This, in any case, is a standard practice.

Dealers reiterated that they will want to hold on to the customer especially in these times.

Maruti, it may be mentioned, had stopped deliveries from December 23 after its annual shutdown of the plant. The silver lining in the cloud is that as the new prices have been announced on the eve of the new year which is the time when buying is at its peak. Dealers are quite certain that between January and March, sales of the 800cc and Zen will"peak like never before."

"We will make the most of it as Telco has already indicated that it will restrict bookings to 10,000," they said.

Some dealers are unhappy that Maruti did not make similar price cuts for the Esteem and Gypsy. The latter has been doing poorly because of its fuel drawback (petrol and not diesel like the Sumo or Armada).

The Esteem, it is feared, is losing ground to the Honda City and a price cut could have helped check the slide.

Shakeout in the tax market likely

The Tata Indica could be a strong contender for the taxi markets in Mumbai and Delhi. The standard and semi-deluxe diesel versions are ideal candidates for this segment as they are as affordable as the Padmini or Ambassador with the added advantage of looking more contemporary.

In fact, there have also been unconfirmed reports in the market that the Maruti 800 with its new price tag will also be an appropriate candidate for the taxi market though it does not have a diesel option to offer. The Uno is in theprocess of entering the Mumbai taxi market and with the Indica likely to follow shortly, there could be a shakeout in this segment also. In that case, the Padmini and Ambassador could be in for tough times.