Tata Motors to hike passenger vehicle prices by up to 2.2% from August to offset rising input costs
Tata Motors had increased prices in April by 3 percent, however, said it expected sales momentum to continue despite the hike
New Delhi: Tata Motors on Wednesday said it will hike prices of its passenger vehicles across models by up to 2.2 percent from August to offset increased input costs.
The company, which had increased prices in April by 3 percent, however, said it expected sales momentum to continue despite the hike.
"We have been working on cost-cutting, but the problem of input cost pressure is piling up and we will be taking a price increase on our passenger vehicles by August," Tata Motors President Passenger Vehicles Business Unit Mayank Pareek told PTI.
He further said the company had taken a price hike in April but the input costs continue to rise, mostly on account of increased commodity prices.
When asked by how much the company will increase the prices, he said, "Roughly it will be 2 percent to 2.2 percent." This will be over and above the 3 percent increase in April, Pareek added.
"The price hike will be across all models, although quantum will depend upon specific models," he added.
Tata Motors currently sells a range of vehicles starting from entry-level small car Nano to premium SUV Hexa with price ranging from Rs 2.36 lakh to Rs 17.89 lakh (ex-showroom Delhi).
When asked if the proposed price hike will impact sales, he replied in the negative, "What we achieved in quarter one was despite the price hike we undertook in April. So we are confident of maintaining the sales momentum."
Pareek further said, "In the last 28 months we have been outperforming the market. In this year's quarter one, while the industry grew 13.1 percent, we have grown by 52 percent."
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Sales of passenger vehicles in the domestic market last month stood at 11,161 units as against 10,341 a year ago, up 7.9 per cent, Tata Motors said in a statement.
Tata Motors on Thursday said it will hike prices of its passenger vehicles across models by up to Rs 40,000 from 1 January, 2019, to offset the impact of rising input costs and increase in fuel prices.
Tata Motors on Wednesday reported a 82.69 percent decline in total sales to 12,924 units in March