That Tata Tiago entered the compact car segment with a very tempting introductory starting price of INR 3.20 lakhs for petrol variant and INR 3.94 lakhs (both prices are ex-showroom, Delhi), for the diesel variant.
Talking to Economic Times on the sidelines of launching the hatchback in Kolkata, S N Barman, VP sales and network (passenger vehicles), Tata Motors, admitted that holding on to the introductory price would be difficult but he didn’t divulge the extent to which the prices will eventually inflate.
Considering the current situation, the priority for Tata Motors is to garner good sales volume for the Tiago irrespective of the profit margin in the short term. Once the Tiago settles into a good sales rhythm, we would be seeing a marginal price like.
The hatchback which is available in both petrol and diesel variants is pitted against the likes of Maruti Celerio, Hyundai i10, Chevrolet Beat, Datsun Go, and so on. It undercuts most of its rivals as of now while offering more equipment in a bid to attract value-conscious customers.
The Tata Tiago is being manufactured at the Sanand plant alongside the slow-selling Nano. The sales success of the Tiago is imperative for the company to maintain a decent capacity utilization factor at the facility.