Geneva: India`s largest auto maker Tata
Motors today said that it is facing increasing pressure on the
margins of its small car Nano on account of the two per cent
excise duty hike announced during the Budget last week.
The company, however, said that the first batch of one
lakh Nanos will be delivered according to their already fixed
price, but is not sure about the price prospects after that.
"The margins on Nano are under pressure because of the
excise duty hike, impacting the component suppliers," Tata
Motors Vice-Chairman Ravi Kant told reporters at the Geneva
Motor Show here.
Indian Finance Minister Pranab Mukherjee has announced a
partial roll-back of the four per cent excise duty cut in the
Union Budget by increasing the rate two per cent.
Kant said the company will deliver the first batch of one
lakh units of the Nano as per the already fixed price.
"We had made a promise and a commitment that the first
1,00,000 units of Nano would be of Rs 1 lakh (ex-factory). So
we will fulfill that promise," he added.
Regarding the opening second round of booking, Kant said:
"We have yet to decide whether we will go for another round of
booking or if we will go for an open market sale of Nano."
The company is also looking at the prospect of exporting
the small car to overseas markets.
"The focus will be on the Indian market first, but we may
also explore other countries in South Asia like Bangladesh and
other neighbouring nations," Kant said.
Kant said that besides the Nano, the company is also
expanding its footprints in overseas markets through other
models as well.
"We are looking at expanding our operations. Markets like
West Asia, Africa, Eastern Europe including Russia, South East
Asia and the SAARC countries have huge scope for expanding our
business," he said.
-PTI
