Tata Motors, India’s third largest carmaker, is the latest to announce a price hike on its passenger vehicles after rivals Maruti Suzuki, Hyundai and Mahindra & Mahindra announced hikes over the last couple of weeks.
Effective January 19, 2022, an average increase of 0.9 per cent will be implemented, depending on the variant and model, Tata Motors informed. “At the same time, the company has also taken a reduction of up to ₹10,000 on specific variants, in response to feedback from customers,” Tata Motors added in the release.
A continued rise in raw material prices, including steel, has forced automotive companies to pass on the hike to their customers. There has been an average of 3-4 hikes this year already. These hikes have impacted all segments of the industry – passenger vehicles, commercial vehicles, two-wheelers and three-wheelers.
“While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this minimal price hike,” Tata Motors further stated.
Strong passenger vehicle demand
Maruti Suzuki, India’s largest carmaker, hiked prices by an average of 1.7 per cent. Its new prices came into effect from January 15. Korean car brand Hyundai hiked prices of the Creta, Venue and Alcazar in the range of ₹2,000 to ₹21,000. SUV specialist Mahindra & Mahindra hiked prices in the range of ₹21,000 to ₹81,000.
The hikes come at a time when demand is the strongest in the past several years, with the passenger vehicle industry sitting on pending order book of more than 5,00,000 units.