This comes as a distress for all those Tata enthusiasts who were planning to buy a new Tata car as the company owing to the recent budget session raised the prices of its segment of cars up to INR 35,000. The recently held budget session did not fare well for the Indian automobile industry which is said to be one of the most thriving automobile industries all across the world. Earlier the excise duty levied on the small cars was 10% and this has now been increased to 12%. So as a result the prices of all the cars of Tata Motors have been increased. The prices of the small cars of Tata will be increased somewhere in the range of INR 2000-8000 and the same will increase for other cars of Tata which fall in the higher price category.
The luxury car segment in India has taken a beating following the budget session as the import duty on all the cars priced above INR 20 Lakhs has been increased from 50% to 75% now and thus the price range of luxury cars is set to escalate. Thus Tata Motors fears for the launch of the new Tata Safari Storme and the price of Nano is also set to increase due to this venture by the Finance Minister. The spokesperson of Tata Motors has released a statement saying that Tata could not sustain the losses due to the budget session and as a result, they have increased prices of all of its cars. Tata fears that the demand of Tata Safari Storme won’t be as they expect due to this price hike and the same will go with the upcoming 2012 Nano. Nano is considered as one of the most economical cars ever made by Tata and since Toyota Kirloskar has also decided to increase the prices, thus Tata has no option left but to follow the same trend that every other car maker is following owing to the budget session.
Last year also, the prices of the cars increased as the budget session ascertained that the interest rate on cars is set to rise by a subsequent percentage and this year the same thing happened as both import as well as excise duty has been increased on all the cars and not only Tata Motors. The price-hike is said to be active with immediate effect and the demand of cars is said to fall by a subsequent percentage. Earlier the sales percentage of Automobile makers in India was a meager 16%but owing to the budget session, this percentage is said to further decrease. Tata spokesperson and other automobile manufacturers are quite taken aback by this move as they did not see it coming. Thus Tata is keeping its fingers crossed regarding the budget session which is about to take place next year and is optimistic about the next year. The rivals of Tata have also increased the prices and thus in order to maintain the throne, Tata was left with no other choice.