Tata Motors to hike price by 1.5 per cent from Jan, on selected cars
Tata Motors is expected to raise the price of its market winner passenger car models by 1.5 per cent from January, 2011. It is being predicted that, the hike will not include the wonder car Tata Nano and the first crossover Tata Aria. Currently in the domestic auto market, Tata Motors competes with array of cars which has its presence in various car segments. But the expected price hike will be on selected models such as the hatchbacks Tata Indica, Tata Indica Vista, sedans includes Tata Indigo, Tata Manza and the MUVs such as Tata Safari and Tata Grande Sumo.
These car models will observe the price hike of 1 to 1.5 per cent. The Indian auto makers are forced to increase the price of its cars due to a constant price upgrading in the inputs such as raw materials, production cost and more.
When questioned about the price hike in January, 2011, the company sources confirmed the news that there will be a minimal increase in the price of its cars but no other detail was revealed.
The news from the Tata Motors stable came when, Volkswagen declared the hike of 2.9 per cent by January, 2011 on the popular hatchback Volkswagen Polo.
From the New Year, Indian auto market will witness the hike in prices from various big auto players such as General Motors, Hyundai Motors India and others. These auto majors have already announced the increment in the price of its car models and credit it to the continuous rise in the price of production cost, raw materials which includes steel, rubber and more. Hyundai will increase the price of its cars by 2 per cent from January 2011 on all its car models.General Motors will hike the price on its car models across India by 1.5 to 3 per cent. Chevrolet is another auto major to join the price hike club, it will increase the price of its car models by 1.5 to 2.5 per cent.
Coming back to Tata Motors strategic hike on the selected car models gives an idea that Tata is trying to capture the Indian auto market with its the first crossover Tata Aria which was launched recently and Tata Nano which is observing downfall in its sales. To re-establish the Peoples Car in the Indian auto market, the company has introduced 90 per cent of loan at minimal interest rate from the Tata Group's arm Tata Motors Finance (TMF). Apart from the low interest finance, the company will also provide various safety features not only in new Tata Nano but in the already sold out models also. This greatly seems an attempt from the Indian auto giants to bring back the magic of the Tata Nano.
Read More on : Tata Nano detailed review