Nissan has followed hot the heels with Seat this week in announcing new car price reductions.

Nissan says it will be cutting its prices from January 1 by as much as 13.2% “restoring the brand's competitive pricing position against those of its key rivals”.

A Nissan spokesman said: “We have chosen to wait until now to introduce a revised price list so that information on all rivals' price movements could be compiled and analysed. The average reduction across the range is 7% with no sacrifices in Nissan's warranty cover or comprehensive equipment levels.”

Examples of the reductions include the Micra 1.0S 3-door down £450 to £7,250; Almera 1.5 SE 3-door down £1,700 to £11,200, Primera 2.0 S down 1,650 to £14,250 and the Terrano II 2.7TD SE 5-door down £1,550 to £21,550.

Seat has reduced prices on the Ibiza, Leon, Toledo and Alhambra ranges. For example the Ibiza 1.4S 3-door is now £1,000 less at £7.995, the base model Leon, the 1.4S is also now £1,000 less at £9,995 and comes with free alloys and the Toledo 1.8 20v SE is now £14,495, a reduction of £1,500.

The New Arosa will be available from January with improved performance and higher spec at the same price as the outgoing model.

John Abbott, Seat UK managing director, said: “These pricing and product actions demonstrate our intention to offer exceptional value for money and ensure we go into 2001 with a very competitive product and price policy.”