Tata Motors will increase the prices of the Nano by up to 4% (Rs. 6,000/-) after it completes the delivery of the car to first one lakh customers. The company has begun intimating retainee-customers that their cars are coming up for delivery. Retainee-customers are those who had retained their booking with the company though not selected among the first allottee-customers from out of the booking process of 2009. Despite a steep increase in input prices, their Tata Nanos are being priced only three to four percent higher, depending on the model, than the price announced at launch. The terms and conditions of booking had provided that the applicable price of the car for a retainee-customer would be notified at the time of delivery. Also, as announced at the booking, they have received interest on their deposit.
The allottee-customers, still awaiting delivery, will get their cars at the same price as announced at launch on March 23, 2009. Tata Motors would like to reward the loyalty of the allottee-customers for bearing with the company through a prolonged period of delivery, given the capacity constraints till the Sanand plant became operational. As a gesture of goodwill and gratitude, the company has announced for them a choice among a one-year free annual maintenance contract (AMC), or free accessories worth Rs.4000/- or an extended warranty.
Tata Motors had said that the first one lakh customers are price-protected and they would get their cars at the announced price range of Rs 1.23 lakh—Rs 1.72 (ex-showroom, Delhi). Increasing input costs, especially that of steel and other commodities like rubber, had put pressure on margins leading to the inevitable price hike. The company said with its 2,50,000 units per year Sanand plant becoming operational ahead of schedule, the company will ramp up production of Tata Nano. The company, however, did not specify when the new price will be effective from.
Source – Hindu