Having garnered over 30,000 bookings, Tata Motors has hit the sweet spot with the Tiago among the masses and silently hiked prices for the hatchback in the range of ₹ 5000-6000. The price hike was an expected one, as the model was launched with an introductory pricing starting at ₹ 3.2 lakh for the base petrol version going up to ₹ 5.6 lakh (ex-showroom, Delhi) for the range topping diesel. The highly competitive initial prices though have worked extremely well for the Tiago in terms of sales.
When contacted, a Tata Motors spokesperson told carandbike.com, "Yes there is a marginal increase in the Tiago prices. As you must be aware that we launched the Tiago with an introductory pricing, which usually is offered for around three months but we have extended to five months for our customers. The response to the car has been very good and we have ramped-up production to meet the growing demand."
Unveiled late last year, the Tiago has been the company's super successful model in ages, averaging around 4000 units every month since its launch in April this year. Given the high demand, the company has increased production at its Sanand facility for the model with delivery period now up to two months for certain variants. Even with the marginal price hike, the pricing on the Tiago still remains competitive.
The success of the Tata Tiago has been largely attributed to the company's fresh approach with the hatchback. While the model is based on the tweaked Indica platform (XO), the automaker opted for a refreshingly new and younger design, while interiors also look modern and are tech friendly. The Tiago's success has also put the Sanand plant to good use and certainly would've boosted the automaker's confidence with respect to the upcoming Kite5 (Tiago based) sub-compact sedan that was showcased at the Auto Expo this year.
Apart from Tata Motors, the month of August saw a host of other manufacturers hike prices across their respective model lineups. Maruti Suzuki announced a price hike of ₹ 20,000 across various models, while Hyundai also increased prices by up to ₹ 20,000. On the other hand, Ford India slashed prices on certain variants of the Figo and Figo Aspire models by ₹ 91,000 in a bid to boost sales.
Tata Motors will now be concentrating on introducing a two new models this year which includes the Hexa crossover that is essentially a replacement to the Aria. The company will follow it up with the Kite5 sub-compact sedan as well as the Nexon sub-compact SUV.