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The Nano, Tata's stupendously cheap micro-car, could have its price raised due to the increase in materials cost. The manufacturer has apparently even asked suppliers to help shoulder the weight, asking them to reduce prices paid per item when quantities rise. Although Tata declined to comment, it seems that volume purchasing has helped mitigate the increasing costs some.

The price goal was originally $2500 for the Nano, but with cost of steel hitting record highs of $675 per U.S. ton last month, the final price may very well change. This is still speculation however as the Tata Group corporations, who hold Tata Motors, also owns India's largest steel producer, Tata Steel Ltd., meaning that renegotiating material contracts may be handled internally.

+ Motor Authority: Materials prices could push up cost of Tata's Nano