Tata Motors provides finance for Fiat, slashes Safari cost by Rs1.9 lakh

20 June 2006

While Maruti Udyog and Hyundai Motors have announced plans for a steep price hike due to the steady increases in raw material costs, Tata Motors has announced a steep price cut for the Safari — by as much as Rs1.9 lakh, thanks to the economies in sourcing that it has built up.

The ex-showroom (Delhi) prices of its new variants, the entry-level TCIC diesel is Rs6.4 lakh, the common rail diesel engine powered Dicor is Rs6.99 lakh and the multi-point fuel injection petrol version is Rs7.99 lakh.

On the other hand, Mahindra & Mahindra's Scorpio is priced between Rs7.06 and Rs8.18 lakh while General Motors' Tavera is priced in the range of Rs5.98 and Rs9.25 lakh.

Tata Motor has managed to bring down the prices of the Safari due to its aggressive cost-reduction plan. The company hopes to increase its volumes, substantially, having sold 4,692 units in 2005-06, a 48-per cent increase over the previous year.

At the same time its finance arm, Tata Motorfinance (TMF), has begun disbursement of car loans to customers of Fiat India. This is for the first time the company is financing non-Tata products.