The company has announced a price hike of up to Rs. 26,000 across its model range, while has confirmed that the current increase in prices won’t be applicable on those bookings made on or before January 21.
Tata Motors has announced an immediate price hike of up to ₹ 26,000 across its model range. The price hike will be effective from today and will vary on different models. The company has already announced a price hike on its commercial vehicle range earlier last month and the current increase is applicable only on its passenger vehicles. That said, the carmaker has confirmed that the current increase in prices won’t be applicable on those bookings made on or before January 21, 2021.
Price hike at the beginning of every year has become a norm in the auto industry due to various reasons. First up, the increase in prices of materials primarily regulates the prices and then other factors like increase in the cost of diesel that affects transportation cost and salary revisions in the company among others also lead to the increase. Citing similar reasons, in an official statement the company said, “Rising input costs and material costs of steel, precious metals and semi-conductors have compelled the company to pass on a part of the cost to customers.”
Demand for Tata Motors‘ PV range including cars and SUVs grew by 39 per cent in FY21 in the first three quarters as compared to the demand in FY20 in the same period. In the third quarter of FY21, Tata Motors also registered its highest ever sales in last 33 quarters and is working on liquidating the supply chain and ramp up its output to meet the increased demand.