Tata Motors hikes prices

The automobile sector today witnessed frenzied activity with a new product launch followed by price hike announcements. Tata Motors announced a heavier tag for its medium and heavy vehicles by 2-2.5 per cent. Rising input costs was cited as the reason for the hike, which is effective from December.

"It has been done to offset cost increases over the year," said a company spokesperson. Tata Motors' announcement follows rival Ashok Leyland's decision to hike prices by 2.5 per cent last month.

The market was also abuzz with speculation on Maruti Udyog going for another round of price revision of up to Rs 15,000 by the year-end. "Owing to the increase in freight costs, the company has decided to pass on the burden to its customers. The revision would come into effect from January 2006 after the company's second budget meeting," dealers were quoted by agencies.

SkodaAuto India will also increase prices in January 2006. "The planned hike is impacted by an increase in input costs. The last price hike on Skoda cars was undertaken in early 2005," said Imran Hassen, managing director, Skoda Auto India.

The price revision by Maruti follows a similar hike in October. Maruti had announced a 0.2-1 per cent hike in all models, except Swift. Hyundai had also hiked prices of its Getz and Accent models, while Toyota increased the tag of Corolla.

Later in the day, Tata Motors announced the launch of country's first sports utility truck - Tata TL 4x4. The vehicle doubles as a pick-up as well as a sports utility vehicle.

The launch range has three derivatives consisting of a 4x2 double cab, 4x4 single cab and a 4x4 double cab in colours of quartz black and arctic silver.

The price tag accordingly varies from Rs 5.8 lakh to Rs 7.98 lakh. The vehicle will be launched in a phased manner across the country, said a company spokesperson.

The 1.2 tonne vehicle, with a gradability of 72 per cent, is adaptable for steep inclines. And for the first time in the country for light truck applications, Tata TL 4x4 runs on tubeless tyres.

"The TL 4x4 has proven its mettle in South Africa, Turkey, Saudi Arabia and the Middle East through extreme climes and arduous terrain. The launch of TL 4x4 in India is another milestone in our constant endeavour, said P M Telang, President - Light & Small Commercial Vehicles, Tata Motors.

"Tough, durable, hardworking yet a lifestyle vehicle, the Tata TL 4x4 is a combination of a rugged workhorse and a sports beauty mixed in one," added Shyam Mani, Vice President (Sales & Marketing), Commercial Vehicles Business Unit, Tata Motors.

The Tata TL 4x4 is equipped with a 1948cc indirect injection turbo-charged intercooled diesel engine generating a power output of 92 PS at 4300rpm and a torque of 190Nm at 2000-3000rpm.

With a gross vehicle weight of 2.78 tons, the vehicle has a power/weight ratio of 33 (highest in the light truck category). Other features include a five-speed synchromesh gearbox with well-distributed gear ratios facilitates easy and efficient driving. A four-wheel drive transfer case provides electronic shift on the fly feature to shift to 4x4 mode.

The Tata TL 4x4 is equipped with an independent front suspension with torsion bars and double wishbones springs and a leaf spring rigid suspensions at the rear, thus providing good rigidity and comfort like an SUV. Picking up

Tata Motors announced a heavier tag for its medium and heavy vehicles by 2-2.5%

Announcement follows rival Ashok Leyland's decision to hike prices by 2.5% last month

The market was also abuzz with speculation on Maruti going for another price revision of up to Rs 15,000