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At a time when the prices of even vegetables are shooting like never before, how can automobile companies provide their products at a throw away prices!

We are talking about Tata’s decision to increase the price of the world’s cheapest car, Tata Nano by 4%.

India’s second largest car maker Tata Motors were forced to increase the price of the model bowing out primarily due to rising costs of input prices.

This news might dent mood of those wanting to own a Nano. But, hey if you are amongst the choicest first one lakh customers for the vehicle, the increased price shall be waived off especially for you.

Tata motors has already started informing its customers about their move who had retained the bookings but are not in the first one lakh customers elite list.

However, despite a precipitous increase in input prices, the company has their retained customers being priced only by a minor 3-4% in addition to the price when the car was launched initially.

With its 2, 50,000 units per year Sanand plant becoming operational ahead of schedule, the company will ramp up production of Tata Nano.

Increased input costs, especially of steel and rubber among other commodities have put on our margins and that’s why we are forced to increase the price marginally.

This is our final step before we open up the sales of Tata Nano

An executive from the sources of the company was quipped as saying on condition of being unnamed.

Well, even the world’s cheapest car could not bear the burnt of the uncontrolled hike, which has galloped almost all things under the sun, and had to increase their prices.

It would be pivotal to note the pricing strategies being adhered to by other companies operating in the same league of business.

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