Indian automaker Tata Motors will be increasing the price of its vehicles from 1 February. The prices will be increased by 0.7 per cent (on average) across its vehicle portfolio including electric vehicles.
“This increase is being taken to partially offset the rise in input costs,” the company informed the stock exchanges.
Earlier announcements
Tata Motors had earlier announced price hikes on its range of commercial vehicles.
Industry experts have pointed out that the price hikes will increase the inventories available with the automobile dealers and impact demand for entry-level cars.
Automobile companies, including Maruti Suzuki India Ltd (MSIL), Volkswagen, Volvo Cars India and Mahindra & Mahindra have implemented price hikes on their vehicle offerings from January 1. Luxury carmakers, including Mercedes-Benz India and Audi India, also implemented price hikes of up to 2 per cent on their select models.