Tata Nano may lose its 1 lakh price tag

Tata Nano which was launched in India in March 2009, may find it tough to retain its cheapest car position as in last one year the cost of row materials has been going through a continuous increment.

Besides this the government of India has revoked the subsidy which it had provided to auto industry two years back. In year 2008 when industry was struggling with recession and decreasing sales, the government of India decreased the excise duty by 2 percent to provide the subsidy.

  Tata Nano which had become world's most news gathering and most talked about car even before its launched in India with its lowest price and the highest mileage claimed by the company. Tata Nano has been also showcased at Delhi Auto expo held from 5th to 11th of January this year.   As Tata Motors' closest competitors in India, Maruti Suzuki and Hyundai have hiked the price of their vehicles in India, the Tata Motors is facing problem to sell Nano at its existing prices. Though Tata Motors had guaranteed that it will deliver first 100,000 units as 'price protected' to its customers, which means that there will be no increase in first 100,000 Nano's price.   In the last few years India has been surfaced as destination market for major car makers around the world as the country has immense opportunity for small cars as there is a large number of middle class population in the country. India is still far behind the country's like Germany and France in car penetration.

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