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Tata motors to hike Nano prices

Date: Jul 18, 2010

New Delhi : Tata Motors on Friday said it will raise the prices of its small car Nano by up to four per cent after it completes the delivery to first one lakh customers.

The company said it has begun intimating customers, who had retained their booking but are not among first one lakh, that their cars are coming up for delivery albeit at higher prices.

“Despite a steep increase in input prices, their (retainee-customers) Tata Nanos are being priced only three-four per cent higher, depending on the model, than the price announced at launch,” the company said in a statement. The company, however, did not specify when the new price will be effective from.

Tata Motors had said that the first one lakh customers are price-protected and they would get their cars at the announced price range of Rs 1.23 lakh—Rs 1.72 (ex-showroom, Delhi).

Increasing input costs, especially that of steel and other commodities like rubber, had put pressure on margins.

The company said with its 2,50,000 units per year Sanand plant becoming operational ahead of schedule, the company will ramp up production of Tata Nano.

“This is the final step, before the company opens up sales of the Tata Nano,” it added.

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