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Tata on Tiago- holding onto INR 3.2 lakh price tag difficult

Tata Tiago India launch

The Tiago is first of the four new products in Tata Motors’ pipeline.

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┬áinflate.

Tata Tiago India launch

The hatchback undercuts most of its rivals.

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.

Tata Tiago India launch

The Tiago offers several best-in-class features.

Also read – Tata Tiago vs Maruti Celerio vs WagonR vs Hyundai i10

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.


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About the author

Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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  • Net Troll

    This is the reason why Tata sales mess up even though they become a type of trend setters. Nano brought competition in the market and people suddenly started working on cheap cars but the 1 lakh price became 1.5 and so forth of Nano thus removing it out of the mainstream car market. Same happening with Tiago starts with low cost while fully loaded but the moment they raise their prices the competitors will bring in something else and Tata may fail again.