Nano is dearer by up to 4 per cent

New Delhi, July 16 (PTI) The world's cheapest car Nano,
dubbed as the Rs 1 lakh wonder, will be dearer for its new
customers with Tata Motors deciding to pass on the increase in
input costs with immediate effect.
The company Friday said it will increase Nano prices by
3-4 per cent, which translates into a hike ranging between Rs
3,700 and Rs 6,894 (based on ex-showroom, Delhi prices).
Tata Motors has so far delivered 45,129 units till June
out of the first one lakh bookings. 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.
The company had said that the first one lakh customers
are price-protected and they would get their cars at the
announced price of Rs 1.23 lakh-Rs 1.72 (ex-showroom, Delhi).
It asserted Friday that delivery for the first 1 lakh
customers is being carried out and the new customers can also
buy the car but at a higher cost.
"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.
Increasing input costs, especially that of steel and
other commodities like rubber, had put pressure on margins.
Hike in Nano prices follow a fourth round of increase in
automobile prices since January. Ashok Leyland, Hero Honda,
Bajaj Auto and General Motors have already announced price
hikes. Tata Motors too raised its commercial vehicle prices.
Other firms such as Maruti Suzuki and Toyota Kirloskar are
also evaluating options to offset pressure from rising input
costs.
Tata Motors 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.
Before this starting operations at this plant, the
company has been producing the 623-cc car from its Pantnagar
plant in limited numbers.
Forced to shift from its original plant at Singur in West
Bengal to Sanand in Gujarat, Tata Motors had decided to take
bookings of the Nano in April 2009 through a lottery system
due to production constraints and selected 1.55 lakh customers
for the delivery of the car in two phases. The delivery of the
first one lakh units are scheduled to be over by 2010. PTI