Tata Motors Set To Hike Prices

India’s largest automobile manufacturer, Tata Motors, has decided that it is about time to revise the price list of its offerings in the personal vehicles line of business. The homegrown carmaker claims that it is directly linked to balance the rise in input costs.

Speaking to PTI, Mayank Pareek, president of Tata Motors in personal vehicle business unit said, “We will hike prices of our vehicles. Currently we are working out the details. Input costs have increased and some of the industry players have already undertaken price hikes. Moreover, we have also not corrected our prices for a long time.” When asked about the expected date of the price hike, he added that it could be around the upcoming festive season.

Tata Motors has witnessed noticeable acceleration in their growth rate, thanks to the Tiago hatchback and Zest sedan. This upcoming price hike can potentially hamper the sales figures, especially with other manufacturers readying to launch festive offers on cars from their stable.

In August 2016, Tata had hiked the price-list of its Tiago hatchback by up to Rs 6,000. This move, as per Tata Motors, came in to sideline the introductory pricing of its little hatchback.

A few weeks back, Maruti and Hyundai announced a price hike of up to Rs 20,000 on their cars. Recently, homegrown automaker Mahindra announced that a price hike by 1 per cent is in the pipeline across its portfolio in India to partially cover the rising input costs. While Maruti attributed the price hike to forex movement and strategic product decisions, South Korean car firm Hyundai said the price hike was inevitable with the increase in raw material costs.