Indian automaker Tata Motors announced on Sunday that it will increase the prices of its vehicles, including electric vehicles (EVs), by 0.7% starting from February 1, 2024. The company cited a partial rise in input costs as the reason for the price hike.
In a statement, Tata Motors stated, "This increase will be effective from February 1, 2024. The prices of vehicles are being raised to partially offset the increase in input costs." The company had previously indicated at the beginning of the month that it had achieved a 9% year-on-year increase in its total global wholesale sales for the third quarter of the fiscal year 2023-24, reaching 338,177 units.
Within the commercial vehicles and Tata Daewoo range, the company recorded a global wholesale of 98,679 units in the third quarter, showing a year-on-year growth of 1%. In the passenger vehicles segment, Tata Motors saw a 5% year-on-year growth with 138,455 units during the same period. Additionally, Jaguar Land Rover's global wholesale sales reached 101,043 units, marking a significant 27% year-on-year growth.
The announcement clarified that these figures do not include the quantity of JLR, which is a joint venture between Jaguar Land Rover and Chery Automobiles and a non-consolidated subsidiary of JLR.
Tata Motors emphasized that it is making maximum efforts to reduce costs and optimize growth but acknowledged that some of the increase in costs might have to be passed on to the market. The company mentioned that the price hike would vary according to the model. Tata Motors had last announced a price increase in April of the previous year, implemented from May 1, 2023.
This move follows a similar decision by Maruti Suzuki India, which announced a price hike on January 16, attributing it to overall currency depreciation and increased commodity prices. Both Tata Motors and Maruti Suzuki are grappling with the challenge of balancing cost reduction with the need for price adjustments in response to market dynamics.
Source: https://hindi.news18.com/news/auto/cars-tata-motors-to-hike-car-prices-from-1-february-2024-due-to-rising-input-costs-8004991.html
By Kuldeep
