The first one lakh customers chosen by lucky draw by Tata Motors were truly lucky to own Nano at a price tag of Rs. 1 lakh. Now the car is speculated to lose its much hyped One-Lakh price tag that makes it as the “world’s cheapest car.” However, Tata Motors struggles to keep the costs under check as prices cost of raw materials and labour continue to escalate continuously. Moreover, the government has imposed new taxes and rolled back its earlier exemptions as well.

Tata Motors like other car manufacturers in India continues to face price hikes such as 25 percent hike in steel, labour problems, rubber tyres as well as shortage of car accessories which cause production delays as well as rise in production costs.

Tata Motors had earlier stated that it will deliver its first one lakh cars at the promised price but the company spokesperson refuses to confirm about continuation of the existing prices.

So far 26,500 Tata Nano have been delivered that are currently being produced at Tata Motors’ Pantnagar plant in Uttrakhand. Tata Motors’s mother plant for Tata Nano begins production in April 2010 when it rolls out its first batch of Tata Nano. The plant is near completion in Gujarat as it was shifted from Singur in West Bengal last year.