Tata has reduced prices for its hatchbacks and sedan models by between 29, 000 rupees ($527) and 50,000 rupees to boost weak demand in India.
Although the automaker has cut prices for its hatchbacks and sedan vehicles, it has increased the prices for its SUVs by between 20,000 rupees and 35,000 rupees due to higher excise taxes and costs. Auto sales in India during the past fiscal year have remained weak due to the economic slowdown and increased ownership costs. On Friday, March 1st, Tata reported sales in the local market down 62% in February to 10,613 units.
“Due to the current weak market, we wanted to offer attractive prices to our customers to boost their morale,” said the automaker’s spokesman.
He added that Tata has cut prices for the Indica range of hatchbacks, the Indigo sedans and the Manza models, but not for the Nano minicar. The automaker has increased prices for the Safari, Aria and Sumo models by between 7,500 rupees and 11,000 rupees o be able to offset higher costs. The cost of these models will increase by between 20,000 rupees and 35,000 rupees after accounting for the new excise tax rate.