The company dealers said that Zen-D, the only diesel vehicle from MUL stable, has been a non-mover since its launch in September last year.

``Even the Rs 37,000 drop in the price tag of the vehicle recently had failed to work wonders on its embarassingly low sales figures. Now we have to clear stocks and are so offering these massive rebates,'' a leading dealer in the capital said.

The Zen diesel is currently priced at Rs 426,052 (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 35,000 rebate on the Esteem models. Industry watchers said this latest move by the MUL dealers is in keeping with the trend in the market. ``There are no buyers for the car and inventories are piling up. The dealers had no other option butto trim the price tag to remain in the market.''

MUL dealers would now start feeling the heat with even Daewoo Motors India Limited having stripped down its small car Matiz and dropped prices by over Rs one1 lakh.

The stripped down base version of the car--Matiz standard (ss), which is a non-airconditioned version, has been priced at Rs 250,778 (ex-factory). The Matiz deluxe (sd) offers airconditioning and a stereo system and is priced at Rs 285,963 (ex-factory) while the Matiz executive (se) will have power windows and a central door lock with a music system. This model would carry a price tag of Rs 327,630 (ex-factory).

The high-end version of the car--Matiz premium (sp)--is the fully loaded version with power steering, rear window defogger, rear wiper and a roof rail and has been priced at Rs 346,148 (ex-factory).