The company, however, increased the prices of its sports utility vehicle range, comprising Sumo, Safari and Aria, by up to Rs 35,000 following the excise duty hike in the Budget.
"We have cut prices of Indica and Manza cars as we want to boost the morale of customers to give them a value proposition and make it more attractive to improve weak market sentiments," a Tata Motors spokesperson said.
The company has reduced the rates between Rs 29,000 and Rs 50,000 with immediate effect, she added.
The official, however, said there will be no change in the prices of its small car Nano.
The Indica range is priced between Rs 3.29 lakh and Rs 4.88 lakh, while the Manza is available for Rs 5.71-8.80 lakh.
Tata Motors' sales have been falling drastically in the recent months. In February, the total passenger vehicle sales in the domestic market stood at 10,613 units, down 69.53 per cent from 34,832 units in the same month last year.