Tata Nano's price to get dearer

Tata Nano, the cheapest car in India and the pride of Tata Motors might get a little dearer in price from this August-September, industry sources suggest. The hike could range anywhere between Rs. 5000 to Rs. 15000. Nano is expected to be available for sale without any waiting periods once the production starts in full swing at its Sanand plant in Gujarat. A hint given by Tata Motors officials during its launch suggest that the company might increase the price of the car, once it would complete the delivery of 1 Lakh units. A spokesman from Tata Motors commented that the company has not made any decision on the price hike as of now and also added that further clarifications on its price would be made in due course of time. The '1 Lakh sales target' seems to be reaching its finale soon, as the company is planning to raise the production of Nano to 1200 units a day at the Sanand facility. Presently, the manufacturing unit operates in single shift and produces 150 units a day. Another plant at Pantnagar also has a similar production capacity. Tata Nano has been in demand since the time it was launched in July 2009 and till now the company has managed to deliver 33,000 units within an year. The car also got a new BS IV variant as the rule was enforced in 13 cities of the country. Analysts from the industry suggest that the customers buying the car after December 2010 might have to pay 10-12% more. There is a component crunch in the market presently and the manufacturers need to find some way to retain stability.

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