Tata Motors to raise Nano prices by up to 4%.
Soaring input costs over the past six months have forced Tata Motors, India’s largest vehicle maker, to increase prices of the Nano by three-four per cent. This increase is applicable only to those customers who have retained their bookings. These ‘retainee-customers’ are those who had retained their booking with Tata Motors, though not selected among the first ‘allottee-customers’ in the booking process of 2009.
In a statement released today, the company said: “Despite a steep increase in input prices, their (the retainee-customers’) Tata Nanos are being priced only three-four per cent higher – depending on the model – than the price announced at the launch.”
After a ramp-up in production at the Sanand facility, which began operations recently, the company is expecting to re-open bookings for the small car in a few months’ time. The price change for the new batch of customers who will book the Nano in the second round of booking will be declared at a later date, Tata Motors said.
According to sources, the company may announce a further increase in the end price of the car for the new customers. However, company officials did not elaborate.
Once the company completes delivery of the car to the first 100,000 customers, it will open the second round of bookings. According to earlier media reports, the company may open the second booking of the car by October this year. The allottee-customers still awaiting delivery of the Nano will get their cars at the same price as announced at the launch.
Tata Motors had said the first 100,000 customers are price-protected and they would get their cars at the announced price range of Rs 1.23-1.72 (ex-showroom, Delhi). Increasing input costs, especially that of steel, rubber and copper, had put pressure on margins.
The company said, with its 250,000-unit-a-year Sanand plant becoming operational ahead of schedule, it will ramp up the production of Nano.
