The increasing steel price has pinched all the car vendors. All of them are pushing the manufacturers to absorb a portion of the cost increase and relieve them.

Realising the aftermath of about 50-60% increase in steel prices, Tata Motors has decided to absorb a major portion of the cost increase for its Nano vendors. The Nano was expected to be launched with a higher price tag due to the high input cost. But, with the vendors renegotiating the contract, the company has poured a few drops of relief.

The Nano itself is a 1 lakh car, and amazingly the input cost is coming out to be very high. The auto component company supplying parts to the Nano is also battling against 40% increase in oil price.