Besides, the company is also offering several sops like free holidays for a couple with every purchase and also 50 trips to Singapore. The company dealers told UNI here that Esteem sales have been slowing down over the past few months and with stocks piling up at the dealerships, discounts and sops are being doled out.

"Entry of several new models, particularly Fiat Siena with a similar price tag and a better vehicle, has had an effect on our sales. Now we have to clear stocks and are so offering these massive rebates," a leading dealer in the Capital said.

Senior company officials confirmed the rebate stating these fiscal discounts are being offered at the dealers' end. The Esteem is available in three versions - LX, VX and AX. The LX version carries a price tag of Rs 475,607 while the VX versions is priced at Rs542,116 and the AX Variant at Rs 601,841 (ex-showroom) in Delhi.

However, its other vehicles, particularly Maruti 800, are still attracting a premium of around Rs 7,000-8,000. Prior to this, the dealers had offered an over Rs 60,000 rebate on the Zen-diesel.

Industry watchers said this latest move by the MUL dealers is in keeping with the trend in the market. "Buyers for the car are vanishing by the day and inventories are piling up. The dealers had no other option but to trim the price tag to remain in the market."