India's leading truck and bus makers, Tata Motors Ltd and Ashok Leyland Ltd, said on Wednesday they had cut prices following a 2 percentage point reduction in factory gate duty.

"We are passing on the full benefits of the excise duty reduction," a spokesman for Ashok Leyland said, adding this would bring prices down on average by slightly more than 16,000 rupees ($321) per vehicle.On Tuesday, the government reduced central excise duty to 8 percent from 10 percent and trimmed tax rates on services to 10 percent from 12 percent.Tata Motors, India's largest vehicle maker, has reduced truck prices, a spokeswoman said but did not give details.

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