The cost of the Nano has increased by nearly six thousand rupees. The company explains this as a result of the sudden rise in cost price. However, as per word the price of the car shall be limited to the previous rate for the first customers who were one lakh in number. The price of the Tata Nano was decided at one lakh and twenty-three thousand rupees for the lowest models. Higher models were ranged at one lakh and seventy thousand rupees.

A lottery had been held sometime last year. This lottery chose the first one lakh Nano customers. The delivery of cars to these winners was initiated in July. Ever since then, the company has delivered upto forty-five thousand Nanos and promises to distribute the remaining to their rightful owners as early as December this year.

Customers who didn’t win the lottery that had been held but retained their bookings, were informed by the company of the price hike, says officials of the company which has its headquarters based in Mumbai. Unaffected by the high rise in cost of material and manufacture, the company has only increased the selling price of the cars by three to four percent higher than the prices that they had announced earlier at the time of launch.

Car manufacturing giants like Maruti Suzuki and Hyundai Motors have increased the price of their automobiles in just a year to four times its previous costs. This they explain is a way of combating the sudden hike in input prices. Tata Motors also recently joined these companies.

However, they were so kind as to declare a compensation for the customers who bore with the delay in the delivery of their cars. They have a choice of extending the warranty of their car of accessorizing their cars with products summing to four thousand rupees. Or else, customers may also apply for a contract that gives them the right to free maintenance for a year.

The Sanand plant of the company which has been operative since June can manufacture upto two and a half lakh nanos in a time span of one year. The company is still aiming to increase their production rates and probing markets abroad in Asia and Africa.