Microeconomics Articles
4 MAR, 2013, 05.23PM IST, AGENCIES
Tata Motors slashes hatchback, sedan prices by Rs 29,000-50,000
NEW DELHI: Tata MotorsBSE 0.74 % said it has cut prices of its hatchbacks and sedans by Rs 29,000-50,000 ($530-$910), in a bid to lure customers to a market that is on course in the current fiscal year to post the first decline in annual sales in a decade.
Tata Motors, however, raised prices of its sport-utility vehicles (SUVs) - the only bright spot in the country'scar market in recent months - by up to Rs 11,000, the spokeswoman, who declined to be identified by name, said.
The increase in prices of SUVs, after factory-gate taxes, will be as much as Rs 35,000, she added.
Tata Motors, suffered its worst decline in the fiscal, with a 70 per cent drop to just 10,613 units sold in February. Sales of the Nano, Indica and the Indigo range stood at 7,769 units while 2,844 units of the Sumo, Safari, Aria and Venture range were sold in February. The company did not disclose reasons for this drastic fall and added it had exported 3,996 vehicles during the month.
The country's car industry suffered its steepest decline in sales during the current financial year as eroding customer confidence hit sales in February. This is in rank contrast to February 2012, when carmakers reported their biggest sales increase during that financial year.
Maruti SuzukiBSE -1.98 % and Hyundai, India's largest carmakers by sales, led the drop to register their second successive monthly decline, even as Mahindra and Mahindra and French carmaker Renault bucked the general trend, helped generously by burgeoning demand for their SUVs in February.
However, with the government raising excise duty on SUVs to 30 per cent from 27 per cent in the Budget, the rise in SUV sales may be difficult to sustain.
The largest carmakers - Maruti Suzuki, Hyundai and Tata Motors - which comprise 80 per cent of the Indian passenger vehicles market, were the most affected and preliminary
Tata Motors slashes hatchback, sedan prices by Rs 29,000-50,000
NEW DELHI: Tata MotorsBSE 0.74 % said it has cut prices of its hatchbacks and sedans by Rs 29,000-50,000 ($530-$910), in a bid to lure customers to a market that is on course in the current fiscal year to post the first decline in annual sales in a decade.
Tata Motors, however, raised prices of its sport-utility vehicles (SUVs) - the only bright spot in the country'scar market in recent months - by up to Rs 11,000, the spokeswoman, who declined to be identified by name, said.
The increase in prices of SUVs, after factory-gate taxes, will be as much as Rs 35,000, she added.
Tata Motors, suffered its worst decline in the fiscal, with a 70 per cent drop to just 10,613 units sold in February. Sales of the Nano, Indica and the Indigo range stood at 7,769 units while 2,844 units of the Sumo, Safari, Aria and Venture range were sold in February. The company did not disclose reasons for this drastic fall and added it had exported 3,996 vehicles during the month.
The country's car industry suffered its steepest decline in sales during the current financial year as eroding customer confidence hit sales in February. This is in rank contrast to February 2012, when carmakers reported their biggest sales increase during that financial year.
Maruti SuzukiBSE -1.98 % and Hyundai, India's largest carmakers by sales, led the drop to register their second successive monthly decline, even as Mahindra and Mahindra and French carmaker Renault bucked the general trend, helped generously by burgeoning demand for their SUVs in February.
However, with the government raising excise duty on SUVs to 30 per cent from 27 per cent in the Budget, the rise in SUV sales may be difficult to sustain.
The largest carmakers - Maruti Suzuki, Hyundai and Tata Motors - which comprise 80 per cent of the Indian passenger vehicles market, were the most affected and preliminary