The announcements of steep cuts from Maruti, as reported by The Indian Express on Wednesday -- ranging from Rs 24,632 for the basic 800 cc model to Rs 51,000 for a stripped-down version of the Zen -- and the smart Telco pricing, has also sent the second-hand car market into a tizzy.

The eagerly-awaited Tata Indica prices were unveiled today before a select audience of India's corporate world at the Royal Western Turf Club in Mumbai.

With today's cuts, the popular 800 cc model from Maruti is likely to remain a winner, priced almost Rs 75,000 lower than the Indica's basic petrol version (neither of the cars has an air-conditioner) -- its fuel economy will also be much poorer since its engine is bigger. With the cheapestSantro from Hyundai also priced at Rs 2.99 lakh, no car can even touch the Maruti 800. And at the newly-lowered Rs 1.79 lakh for the eight-seater Omni, it is clearly the best deal on four-wheels in the country today.

In the diesel segment, Tata's Indica's a clear winner. A steal at Rs 2.85 lakh for the basic version, is now the cheapest diesel car available in the country. Its nearest competitor, the Fiat Uno's costs Rs 3.84 lakh, though it offers more power. And at Rs 4.26 lakh, Maruti's Zen D is clearly a loser, even with its new Peugeot engine.

While existing car manufacturers remained stoic in the face of today's developments, a further price war is expected. At Rs 3.55 lakh for a 796 cc engine which, admittedly, gives the same power as the Zen and the Indica, Daewoo's Matiz is clearly over-priced. The fact that its design is still to strike the popular fancy is of little help. Daewoo may now be forced to quickly come out with its basic or stripped down version -- it had put this off earlier, citingthe poor state of the market as a reason for not doing so. A spokesperson for Ind Auto, the joint venture of Fiat India Automobiles and Premier Automobiles, said that they were ``prepared for the price war.'' Fiat has been known to be an aggressive player globally, and there's no reason why it won't follow suit.

The ripples will soon reach the second-hand market. The Zen, which is currently going at Rs 2.7 lakh (1997 model) in the second-hand market, is expected to crash to Rs 2.2 lakh after the revision in prices of the 800 and the Zen. The price of a 1995 model is expected to crash to Rs 1.6 lakh from Rs 2 lakh at present. The Maruti 800 (1995 model) is now expected to quote in the range of Rs 75,000-90,000.

Even before today's sharp price cuts, some Maruti dealers have already begun exchange schemes where customers can get price discounts while trading in their two-wheelers for a Maruti 800. Announcing today's cuts, Maruti chief RSSLN Bhaskarudu said that the company took these steps to revive thesluggish auto market. Bhaskarudu said that Maruti's profits would fall, but that he hoped that sales would go up around 25 per cent.

However, with the slew of price cuts, it's still not too clear if buyers are going to rush in immediately. For one, as automobile enthusiast Murad Ali Baig says, the Indica's finishing is not that good as the Korean cars. The fact that most Tata offerings have faced quality problems is also certain to make buyers wish to wait a bit to get market reports. For now, however, with price the determining factor with most Indian consumers, with the price wars still hotting up, the consumer is finally king.