Tata Motors on Monday announced that it will be increasing prices of its passenger vehicles by up to ₹25,000 from January 1. The move has been forced upon the company due to rise in input costs. This is second price hike by the company.
In October, it had announced a price increase by up to ₹15,000. Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, said “The increase in prices of raw material commodities such as steel, aluminium, copper and rubber over a period of time has put a lot of pressure on us and as a resultant we are forced to hike prices of our passenger vehicles." This comes even as the auto major is seeing good demand for its cars with month-on-month sales growth owing to the uptake of TIAGO. The company is gearing up for its next launch, that of HEXA in January.
Shares of Tata Motors were down 2 per cent after the announcement. At close, the stock of the company was quoted at ₹454.55 on the BSE.
Renault India and Toyota Kirloskar Motor have also recently announced price hikes. Hyundai India and Maruti Suzuki too hiked prices by up to ₹20,000.