The car maker, already conducting trials of city buses in Bangalore, said it would launch those manufactured at its Chakan facility in the second half of 2011.
A company statement said the increase would be implemented from October 1 and in the range of Rs 3,000 to Rs 8,000, depending on the model.
In the last part of the series, we rate all the cars in the Rs 6-18 lakh category to help you choose the one that suits your needs.
The new car will be offered at an introductory price of Rs 3.48 lakh to Rs 5.91 lakh (ex-showroom ,Delhi) and replace the existing model in the market.
According to a report by JD Power, Nano will replace Hyundai's i10, which is slated to take the second position in 2010 after Maruti Suzuki's Alto.
The company's wholly-owned subsidiary BMW India has a manufacturing facility in Chennai, with an installed annual production capacity of 3,000 units.
Tata Motors is understood to be mulling a hike in the price of its passenger cars Indica and Indigo by a significant amount with effect from October 1.
Executive Vice-president Takeshi Uchiyamada said the company will introduce the new models in a bid to boost sales, by expanding its fleet of eco-friendly cars.
According to Society of Indian Automobile Manufacturers, domestic passenger car sales jumped to 1,60,794 units and motorcycle sales rose to 7,27,542 units in August.
Suzuki Motor Corp chairman Osamu Suzuki says the company would pump in Rs 1,925 crore to set up a third manufacturing plant at Manesar.