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) would 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 800) with the customer and the company also willing to chip in.

For instance, buyers are already getting a gold coin of around Rs 7,000, so that would be deducted from the difference (Rs 25,000). "We have toldthe customer that we are willing to share part of the loss to them". 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, Omi 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 India, 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 five callssince Thursday morning for the 10 cars that were booked. Customers who are having their cars financed are those who are demanding the new prices of the vehicles. 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 800 cc 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 would 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 800 and Zenwill "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.

Meanwhile, prices of cars in the second-hand car market are expected to further crash following Maruti Udyog's decision to slash prices on the Omni, the Maruti 800 and the Zen by Rs 7,000-37,000. Telco's announcement of the price tag on the Indica at Rs 2.59 lakh (ex-showroom, Delhi) will also contribute no less to the fall in prices. 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 crashto 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.

Second hand car dealers say that the price fall will give a fillip to the second-hand market since prospective buyers of two-wheelers may now try to upgrade to second-hand four-wheelers by shelling out a little more money. "Two-wheeler manufacturers will now be forced to rethink their pricing strategies," said a dealer.

Owners of the three Maruti models are, however, going to find it dificult to sell their vehicles in the second-hand market at existing prices as there may be few takers.