Ratan Tata, MD and Chairman of Tata Motors launched Tata Nano this year at Rs 1 Lakh as promised four years back. He said,”..a promise is a promise…”. However, this does not mean that there would be no price hikes in the future. Auto car makers are finding it difficult to keep prices under check due to rise in inflation in India.
There has been a considerable increase in steel prices as well as all other input costs for making a car. This means that auto car market in India can expect a hike in prices in coming months. It also means the consumers shall have to shell out more to own their dream machine.
Logan from Mahindra Renault has already witnessed a 3-5 percent hike amounting to nearly Rs 4500 or more. Maruti is still contemplating about its price structure for coming months. It plans to bring two new models into the market shortly.
The small car segment is expected to hit by at least 2 percent increase in input costs while large commercial vehicle makers may have to face a harder blow. The blow comes two-way with increase in steel prices and the interest rates showing no signs of softening.
