Tata Motors said that due to the large increase in the total cost of production, especially the price of essential raw materials including steel and precious metals, it will have to pass some of the burden on to the customers.
Tata Cars
Tata Motors has planned to increase the prices of its passenger vehicles due to the increase in the cost of production. Although the major company in the vehicle sector did not say when it will increase the prices of passenger vehicles, but has said that it will take this step soon. Tata Motors said in a statement on Monday that the company intends to increase the prices of its series of cars and SUVs soon.
The company said it will have to pass some of the burden on to the customers due to the large increase in the cost of total production, especially the price of essential raw materials including steel and precious metals. The company said that a formal announcement of the price hike will be made in the coming days, weeks. Tata Motors sells models like Tiago, Nexon and Harrier in the domestic market. Earlier on Sunday, Honda Cars had announced to increase the prices of its entire range of models from August.
There has been a huge increase in the prices of steel in the country during the last few months. In June, major steel manufacturers increased the prices of hot rolled coil (HRC) and cold rolled coil (CRC) by Rs 4,000 and Rs 4,900 per tonne, respectively. HRC and CRC are flat steel products used in vehicle, equipment and construction sectors. In such a situation, due to increase in steel prices, the prices of vehicles and consumer goods increase. In addition, the cost of construction also increases.
Obviously with the pandemic ‘lockdown’ and curfew has now become a new trend. Realizing this, car makers like Maruti Suzuki, Hyundai, Honda, Kia, Toyota, Tata Motors, Mahindra & Mahindra and Mercedes Benz have adopted digitization in terms of sales. Vivek Srivastava, Marketing Head, Tata Motors (Passenger Vehicle Business Unit), said that the second wave of the COVID-19 pandemic has brought a lot of change in the buying and selling pattern of the customers.
At Tata Motors, several digital initiatives have been launched since last year’s national lockdown. The company introduced its e-commerce platform ‘Click to Drive’ to promote contactless sales in a big way. Last year there was a good response about it. In this, especially during the lockdown, people showed interest and there was a significant increase in shopping. At present, 40 percent of the customers are coming to the company through digital medium. This is much higher than last year.
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