Tata Motors declare price hike across all segments

The month of December 2010 brought a wave of sensational news across the Indian Auto market where all the automobile manufacturers declared to increase the price of their offerings in the year 2011. And now we have Tata Motors, the Indian Auto major, standing first in line. The company has decided to hike up the prices of its models owing to the increasing prices of inputs.

Tata Motors is the first one to make the prise rise announcement across all its cars. The decision of the company is going to affect all its commercial vehicles and few of the passenger vehicles. A range of Rs 1,500 to Rs 30,000 rise will be observed on Tata Motors cars. The reason given by the company behind this sudden increase of prices is the increasing input cost which the company has to bear.

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The passenger cars from Tata Motors stable will receive a hike of Rs 3,000-15,000 whereas the commercial vehicle's price rise will lie in the range of Rs 1,500 and Rs 30,000. Coming to the flagship Tata Indica and Tata Indigo, will receive an increased price by Rs 3,000-Rs 15,000. The exact increased amount will depend on the model ordered by the customer.

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The utility vehicles of Tata Motors will also face an increased price including Tata Grande MK II, Tata Xenon, Tata Sumo and Tata Safari. The increase on these utility vehicles will lie between Rs 8,700-14,500. The commercial vehicle segment of Tata will get a hike by Rs 1,500-30,000 rest the other models will come at the older price tag. The company back in December 2010 announced this upcoming increase but no exact amount was disclosed but now when the exact figures are out, one can make a choice accordingly. Its not only about Tata Motors but all the automobile manufacturing companies are facing the problem of increased price of inputs which is stressing up the nominal margin for them. Many other automobile majors will soon come up with the increased price news.