Tata Motors tramp prices of its cars marginally

Tata Motors, which is one of the leading companies in India has recently declared that it will be increasing the cost of all of their car models with a sole exception of Tata Nano and Tata Aria. The step has been taken in order to cover up for the increasing input costs incurred by the company. The rise in the prices will be between the range of Rs 7000 to Rs 12000. This price hike is also expected to somewhat lessen the effect of the currency fluctuations. The new prices have been brought into effect from yesterday all over the country.

 

Tata India was initially shying away from increasing the cost of its cars at the beginning of the year which was mainly because of the lesser demand of Tata cars in India during that time. However, Tata Motors have now received a considerable growth of around 16 percent in the first month of the year 2012 contrary to the same time of the month of January in year 2011. Usually every car company increases the costs at the beginning of the year but this pattern was not followed in 2012. Many other major companies like Maruti, Toyota and several others also waited for some time prior to the declaration of their increased costs.

 

Among all Tata Motors is amongst the last company to have hiked prices. The hike is somewhere in the range of 1 % to 2.5 %. Having said that, the cost of the cars are expected to achieve some stability now until any modifications are made in the policies for the car industry in the next budget. Now the only thing that needs to be seen is the effect of the price hike on the sale and demand of the cars from Tata Motors in the Indian market