Tata Motors hikes Nano prices by 3-4%

Tata Motors Ltd. announced that it has increased the price of the Nano by 3-4% for those customers who had continued to retain their bookings with the company. "Despite a steep increase in input prices, their Tata Nano's are being priced only 3-4% higher, depending on the model, than the price announced at launch," Tata Motors said in a statement. With its 250,000 unit per year Sanand plant becoming operational ahead of schedule, the company will speedily ramp up production of the Nano, Tata Motors said. Accordingly, the company has begun intimating retainee-customers that their cars are coming up for delivery. This is the final step, before the company opens up sales of the Nano, Tata Motors said.



The terms and conditions of booking had provided that the applicable price of the car for a retainee-customer would be notified at the time of delivery, Tata Motors said. Also, as announced at the booking, they have received interest on their deposit, it added. The allottee-customers, still awaiting delivery, will get their cars at the same price as announced at launch on March 23, 2009. The announced price range at that time was Rs1.23 lakh to Rs1.72 (ex-showroom, Delhi).

Tata Motors said that it would like to reward the loyalty of the allottee-customers for bearing with the company through a prolonged period of delivery, given the capacity constraints till the Sanand plant became operational. As a gesture of goodwill and gratitude, the company has announced for them a choice among a one-year free annual maintenance contract (AMC), or free accessories worth Rs4000 or an extended warranty.