Business Daily from THE HINDU group of publications
Monday, Mar 23, 2009
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Business Daily from THE HINDU group of publications Monday, Mar 23, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Corporate
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New Projects Industry & Economy - Cars
Manu P. Toms Mumbai, March 22 Unveiling the Nano at the Delhi Auto Expo last year, Tata Motors Chairman, Mr Ratan Tata, had warned of the consequences of inflation and rising raw material costs on the price tag of Rs 1 lakh (ex-factory without transport). The car may have had a bumpy journey since, but vis-À-vis raw material prices it has been a joy-ride. Cold rolled steel is a case in point. “In January 2008 (when the car was unveiled), cold rolled steel was selling at Rs 45,000 a tonne and climbed to nearly Rs 60,000 in April-May. Today, cold rolled steel is available for Rs 32,000-35,000 a tonne,” says Mr Ankit Miglami, Director-Commercial, Uttam Galva Steels, which supplies Tata Motors and Mahindra & Mahindra. Another important component in the Nano is rubber, whose price was Rs 93 a kg at the time of unveiling. It stretched to Rs 140 in August before dropping to around Rs 75/kg now. “Car tyre prices which went up after January 2008 are down to the earlier level. Nano tyres may cost Rs 1,200 a piece,” says Mr Paras K. Chowdhari, Managing Director, Ceat. Plastic has been used extensively in the Nano but the prices of plastic compounds have been constant though ranging from Rs 150 to Rs 600 a kg, according Mr Nitin Kothari, DSM Engineering Plastics India. From the customer’s point of view, the best piece of news is that the price of petrol has come down by Rs 10 a litre since December (though it was hiked by Rs 5 earlier). The diesel version of the Nano is due in 2010. (With inputs from Suresh P. Iyengar) More Stories on : New Projects | Cars | Tata Motors Ltd
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