Tata Motors likely to join other automakers in price hike

Nandana James Updated - January 13, 2021 at 03:37 PM.

An employee is seen inside a showroom of Tata Motors in the southern Indian city of Hyderabad in this August 31, 2009 file photograph. Tata Motors shares fell 11.9 percent on May 30, 2012, wiping more than $1.5 billion off the value of the Indian car maker, as a fall in operating margins at its Jaguar Land Rover unit gave investors a sobering reality check. REUTERS/Krishnendu Halder/Files (INDIA - Tags: TRANSPORT BUSINESS LOGO)

Tata Motors is also likely to join other automakers in announcing a price hike for its passenger vehicle models due to the increase in commodity prices, a top company official said on Wednesday.

Until now, the company has announced a price increase only in its commercial vehicle range.

“Input costs have been an issue across the industry. We have not yet announced a price increase, but we are just looking at the competitive landscape. But I think it’s a matter of time before there is a price increase,” said Vivek Srivatsa, Head, Marketing, Passenger Vehicle Business Unit, Tata Motors, while addressing reporters on Wednesday, on the sidelines of the launch of the Altroz iTurbo.

The rise in commodity prices — including steel, aluminium, precious metals and plastics — has led automakers to increase model prices this month.

Automakers like Maruti Suzuki, Mahindra & Mahindra, Hero MotoCorp, Mercedes-Benz, Volkswagen, Hero MotoCorp, Nissan, Renault India, Honda Cars, Ford India, Isuzu, BMW India and Audi India have already announced price hikes effective from this month.

The rise in commodity prices aside, most automobile companies announce price increases from January every year, to attract customers in the December sales and liquidate the inventories.

Published on January 13, 2021 10:07