Tata Motors streamlines pricing structure

    Carmaker eliminates hidden costs and handling charges to reduce on-road pricing. More transparent pricing policy to benefit customers.

    Published On Aug 17, 2020 04:16:00 PM


    Tata Motors streamlines pricing structure

    Tata Motors has revised prices for its mainstream models like the TigorAltrozHarrier and the Nexon. While a first look at the new price structure shows an increase in the ex-showroom cost of most of these cars, a deep dive into the actual breakup reveals that the on-road prices for the month of August 2020 has actually come down a bit, when compared to July 2020. 

    • While ex-showroom prices of some cars have increased, on-road prices have reduced for some
    • New pricing policy aimed at bringing transparency into vehicle buying process
    • Models like the Altroz, Nexon, Tiago and Tigor are now being sold with updated prices

    Until July 2020, the on-road price of any new Tata hatchback, compact sedan or SUV differed from city to city, and in some cases, dealer to dealer as well, due to multiple add-ons to the pricing. For instance, handling charges were included in the final on-road price. Tata Motors’ new strategy eliminates the pricing difference, along with the removal of ‘handling charges', and makes the overall process more transparent, thus making on-road prices for its cars and SUVs more uniform.

    Which Tata cars and SUVs are covered under the new pricing strategy?

    Tata Nexon XZA+ DT (O) diesel sees a price cut

    The diesel-powered Nexon XZA+ DT (O) continues to have the same ex-showroom price of Rs 12.70 lakh in August 2020. However, the SUV’s on-road price has been reduced by Rs 11,500 – from Rs 15.37 lakh to Rs 15.25 lakh – this month onwards.

    Tata Nexon XZA+ DT (O) petrol, Harrier XM see a marginal (on-road) price hike

    In July 2020, the Nexon compact SUV's XZA+ dual-tone petrol variant was priced at Rs 11.12 lakh (ex-showroom) and Rs 13.36 lakh (on-road). The model has seen its ex-showroom price increase by Rs 14,500 in August 2020, which translates into an ex-showroom price of Rs 11.34 lakh. The same variant's on-road price is Rs 13.41 lakh, which is only Rs 5,417 more than its on-road price in July.

    Revised Tata Nexon prices
    VariantPrice in July 2020 (ex-showroom)Price in August 2020 (ex-showroom)Difference (ex-showroom)Price in July 2020 (on-road)Price in August 2020 (on-road)Difference (on-road)
    Nexon XZA+ (O) (Diesel)Rs 12.70 lakhRs 12.70 lakh-Rs 15.37 lakhRs 15.25 lakh- Rs 11,500
    Nexon XZA+ DT (Petrol)Rs 11.12 lakhRs 11.34 lakh+ Rs 14,500Rs 13.36 lakhRs 13.41 lakh+ Rs 5,417

    The Tata Harrier XM variant was priced at Rs 15 lakh (ex-showroom) and Rs 18.30 lakh (on-road) in July. This version sees a price hike of Rs 15,000 on its ex-showroom price, which translates into a sticker price of Rs 15.15 lakh. Despite the Rs 15,000 price hike, the Harrier XM in August 2020 has an on-road price of Rs 18.36 lakh, which means, the on-road prices for this SUV has gone up by only Rs 6,300.

    Revised Tata Harrier prices
    VariantPrice in July 2020 ( (ex-showroom)Price in August 2020 (ex-showroom)Difference (ex-showroom)Price in July 2020 (on-road)Price in August 2020 (on-road)Difference (on-road)
    Harrier XMRs 15 lakhRs 15.15 lakh+ Rs 15,000Rs 18.30 lakhRs 18.36 lakh+ Rs 6,300

    Tata Tigor gets on-road price cut of upto Rs 40,000

    The Tigor compact sedan also benefits from reduced prices. While the model's ex-showroom prices see a reduction ranging from Rs 10,000 to Rs 36,000, depending on the variant, its on-road prices have a larger price cut. The Tigor XE gets the highest on-road price reduction of Rs 40,000, while the XM and XMA are now cheaper by Rs 31,000 and Rs 12,000, respectively. The higher-spec Tigor XZ also sees an on-road price cut of Rs 12,000. 

    Revised Tata Tigor prices
    Price in July 2020 (ex-showroom)Price in August 2020 (ex-showroom)Difference (ex-showroom)Price in July 2020 (on-road)Price in August 2020 (on-road)Difference (on-road)
    Tigor XERs 5.75 lakhRs 5.39 lakh- Rs 36,000Rs 6.35 lakhRs 5.95 lakh- Rs 40,000
    Tigor XMRs 6.10 lakhRs 5.99 lakh- Rs 11,000Rs 6.90 lakhRs 6.59 lakh- Rs 31,000
    Tigor XMARs 6.60 lakhRs 6.49 lakh- Rs 11,000Rs 7.44 lakhRs 7.32 lakh- Rs 12,000
    Tigor XZRs 6.50 lakhRs 6.40 lakh- Rs 10,000Rs 7.34 lakhRs 7.22 lakh- Rs 12,000
    Tigor XZ+Rs 6.99 lakhRs 6.99 lakhNARs 7.87 lakhRs 7.86 lakh- Rs 1,000
    Tigor XZA+Rs 7.49 lakhRs 7.49 lakhNARs 8.41 lakhRs 8.41 lakhNA

    Tata Altroz prices have increased

    As we’ve reported just last week, Tata Motors has increased the ex-showroom prices of the Altroz premium hatchback by up to Rs 15,000.

    Tata Motors seeing an uptick in sales

    Meanwhile, the recovery in India’s overall passenger vehicle segment continues with a reducing month-on-month rate of decline, led by the surging demand for SUVs, which saw 14 percent year-on-year growth in July 2020. 

    Tata Motors recorded strong market recovery in July 2020 with estimated sales of 15,012 units, which translates to a year-on-year growth of 43.17 percent (July 2019: 10,485). The carmaker’s July numbers are a marked improvement over its June 2020 estimated overall sales of 11,419 units (June 2019: 13,351).

    The company’s improving market performance is benefiting from its thoroughly refreshed product line-up. The year 2020 has seen Tata Motors launch the all-new Altroz premium hatchback and Nexon EV, in addition to introducing significant updates to the regular Nexon, as well as the Harrier, Tiago and Tigor.    

    The Altroz has sold an estimated 6,740 units in the past two months (June: 3,104; July: 3,636), which indicates that consumers have taken to the new car. Meanwhile, the Harrier, like the Nexon, seems to be riding the resurgent wave of demand for SUVs. With estimated sales of 1,638 units in the June-July 2020 (June: 653; July: 985), this Tata product is also back in the business.

    Also see:

    2020 Tata Nexon vs Hyundai Venue petrol comparison

    Tata Nexon EV now available on subscription basis

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