Tata Motors to increase prices of passenger cars effective April 1

Tata Motors has cleared the air that it is increasing the price of its passenger cars barring the people's car Tata Nano. Effective 1 April, the Indian auto giant will increase the price of its cars by Rs 36,000. Tata Motors officials revealed that the decision has been taken in order to grapple with the rising input costs. Several cost control measures were adopted but it did not make any difference however the company is forced to take this step.

The rise in the price of the cars is going to affect various cars under Tatas' portfolio. The popular hatchback Tata Indica will now cost around Rs. 7,000 -Rs. 9,000 more than its current price, similarly Tata Indica Vista and Tata Indigo will also get costlier by Rs. 8,000-Rs 11,000. The latest model rolled out by the company, Tata manza will cost Rs. 10,000 to Rs.15,000 more than its current price. However the company is in no mood to increase the price of its wonder car, Tata Nano. The company's officials informed that the global sales of its cars increased by 14 per cent in the month of February. The company unveiled the retouched version of its popular hatchback in diesel and petrol variants last week. The refreshed Tata Indica ev2 is priced between the range of Rs. 2.95 lakh and Rs 3.95 lakh (ex-showroom, Delhi).

Other auto biggies are mulling over the price hike, on the other hand Honda Siel Cars India has already made the announcement that it will increase the price of its cars by 2-3 per cent effective April 1, 2011. However the company will not increase the price of its recently launched retouched saloon Honda Accord.

The auto industry witnessed a robust sales in the month of February, in the month of January 1.84 lakh cars were sold however the car sales surpassed this number in the month of February.

As per the prediction made by SIAM, India's total domestic car sales is expected to grow 26-27 % this year.

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