Tata Motors Cuts Hatchbacks and Sedans Prices, SUVs get Expensive

2013 Union budget has compelled all the automakers to hike the prices of their SUVs due to increased excise duty. And Tata Motors being one of the key players in utility vehicle segments had to unwillingly take up the decision to increase the price of its SUVs by up to Rs 35,000. But to balance things, the company has now said that it has cut prices of its hatchbacks and sedans by Rs. 29,000-50,000, so to lure buyers at a time when the market isn't in a good shape.

Tata Motors has reported a decline of about 33 per cent im total vehicle sales at 61,988 units for February 2013 as against 92,119 units sold in the same month last fiscal year. It's not just the February 2013, in fact Tata Motors didn't have a favourable 2012, and at a time when the company's newly launched SUV Safari's sales might get affect, lowering down the prices of its hatches and sedans was much needed.

To make things right in 2013, the company has plans to launch several new vehicles, and most of them are likely to be at very competitive prices. Like we reported today, Tata Motors will also launch a Manza based compact sedan at a very aggressive price to compete against the segment leader Swift Dzire.

Source: Reuters India