Tata Motors to hike passenger vehicle prices by up to Rs25,000 from January
13 Dec 2016
The company on Monday announced an across-the-board increase in the prices of its passenger vehicles starting from Rs5,000 to Rs25,000, depending on the model, effective 1 January.
The home-grown auto major said the price hike is intended to offset increased input costs. "The increase in prices of raw material commodities like steel, aluminium, copper and rubber over a period of time has put a lot of pressure on us and as a result, we are forced to hike prices of our passenger vehicles," Tata Motors President (passenger vehicle business) Mayank Pareek said.
The company is witnessing good demand for its cars and has witnessed month-on-month growth on the back of the recently-launched Tiago, he added.
Tata Motors sells a range of passenger vehicles, including the entry-level small car Nano, the newly launched hatchback Tiago and crossover vehicle Aria, at a price range of Rs2.18 lakh to Rs17.29 lakh (ex-showroom Delhi).
This is the third price hike for the Tiago since its launch last year
It was in October 2016 Tata Motors had announced another increase in its passenger vehicle prices by up to Rs12,000.
The company is now, yet again set to hike prices of its vehicles from the 1 January 2017.
Yesterday, Renault India announced plans to increase prices of its vehicles by up to 3 per cent from next month to offset increased input costs. Earlier, Toyota Kirloskar Motor (TKM) had announced hike in prices of its vehicles by up to 3 per cent from next month to offset increased input cost and consistent upward trend in foreign exchange rates.