This will be the third price hike by Tata Motors. The company had earlier increased the prices by up to 1.8 percent in May 2021. In January this year, the prices of cars were also increased by up to Rs 26,000.
Earlier this month, Tata Motors announced that it is planning to increase prices across its passenger vehicle line-up. However, the company did not disclose the deadline or quantum of the hike at that time. Now according to a report in PTI, the domestic carmaker will increase the prices of its passenger vehicles in India from next week. Through this price hike, the company aims to offset the steep rise in the procurement cost of essential materials like steel and precious metals.
This will be the third price hike by the Indian carmaker this year. Shailesh Chandra, President, Passenger Vehicles Business Unit, Tata Motors told PTI, “We have seen a very sharp increase in the prices of steel and precious metals in the last one year. The financial impact of the rise in commodity prices is from the past one year. This is 8-8.5 per cent of our revenue in the last one year.”
Shailesh Chandra also said, “From a company perspective, we have grown by only 2.5 per cent. Ex-showroom, it will be around 3 per cent, so there is a big difference in input cost in the increase that has been made but this gap is still widening because the prices of essential commodities are rising, so now we are going to start from next week. We are forced to increase the prices of vehicles. He further added that the company has been able to mitigate some of the impact of rising input costs, as it did not want to pass on a significant amount of price increases to the customers. However, he added that the carmaker is currently working on enhancements in each model/trim.
The automaker had earlier increased prices by up to 1.8 percent in May 2021. In January this year, the prices of cars were also increased by up to Rs 26,000. The carmaker sells a number of passenger vehicles in the Indian market like Tiago, Tigor, Nexon, Harrier and Safari.
These companies also announced to increase the prices
Maruti Suzuki India has recently increased the prices of Swift and all CNG models by up to Rs 15,000 due to rising cost. Honda Car India has also announced a hike in car prices from next month as it seeks to offset the impact of hike in commodity rates. Similarly, Toyota India will also increase the prices of the Innova Crysta MPV with effect from August 1, 2021, due to a substantial increase in input cost.
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