Auto-component suppliers approach Tata Motors to hike Nano's priceAuto-component suppliers have suggested a price rise to Tata Motors
Apnaloan.com Research Bureau
16 May 2008
Pressure is growing on Tata Motors' to hold the price tag of Rs 1 lakh for the Nano since leading auto-component suppliers have approached the company for an increase in price.
The company recently set up a special team to look at ways and means to control the car's manufacturing costs with steel prices soaring.
Sona Koyo, which is supplying steering systems for the Nano, and Minda Group, which supplies electrical switches, have confirmed that they and other component suppliers have suggested a price rise to Tata Motors.
Most component manufacturers believe that since the car is yet to go into production they are optimistic that Tata Motors will reconsider component prices.
As reported by Business Standard, N K Minda, Chairman, Minda Group said, "We are holding discussions with Tata Motors. They have not agreed to our hike in prices but we are optimistic that prices should be revisited once production of the car starts. The hike so far has been unbearable."
Disappointed by the government's lack of initiative towards the automotive industry, ACMA will send the government a petition in the next couple of days seeking a duty cut on alloy steel.