With the increasing steel prices and fuel prices, all car manufacturers are increasing the price tag of their respective cars. Tata Motors expected a production cost of Rs.17 billion for the Nano but unfortunately this estimated cost was overrun by Rs 3 billion.
Don’t you worry, you are in safe hands. Inspite of the increased input costs, the company has planned to absorb some portion of the hike and has promised to sell the car with minimal increase in price tag.
The increased cost of production is also due to water logging at the Singur plant site during last year's monsoon and protests from a large group of peasants. Even then, the company is working at a breakneck speed to launch the Nano on the announced date. The company has also spent some amount in raising the level of land.
So many expenses, pulls our thought to the actual launch price tag. Will the company still be able to sell the car at the proposed price tag?
Labels: Car-Price, Tata-Motors
3 Comments:
That is true but hope there is no much difference in the cost lets wait to see when the Nano is out in the market
Its definite that with the increasing input cost, the company will also raise the price tag of teh car.
Thats bad, the company is defintely going to shift the pressures to us by a good increase of price tag.
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