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Updated January 21st, 2024 at 16:50 IST

Tata Motors latest to join auto giants in a price correction move

This surge in price will be in effect from February 1, this year with an aim to partially offset the effect of ever-rising input costs.

Business Desk
Tata Motors price hike from February 1
Tata Motors price hike from February 1 | Image:Tata Motors
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Tata Motors latest to join auto giants in a price correction move

Price Hike: The Mumbai-headquartered automotive firm Tata Motors has become the latest carmaker to join the price hike club, announcing a 0.7 per cent increase applicable on its passenger vehicle offerings, including electric vehicles (EVs).

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This surge in price will be in effect from February 1, this year with an aim to partially offset the effect of ever-rising input costs.

This move comes as a follow up to the automotive arm of Tata Group's earlier decision in April 2023 to raise the prices of its passenger vehicle range close to 0.6 per cent, starting from May 1.

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The country's automobile industry has witnessed a trend, with various manufacturers, including industry giant Maruti Suzuki, resorting to similar price hikes in the early months of FY24.

Recently, Maruti Suzuki increased the prices of its entire model range due to inflation and heightened commodity prices. The estimated weighted average of increase across models stands at 0.45 per cent.

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Adding to this bandwagon of price-centric decisions, the German luxury carmaker Audi announced a price hike up to 2 per cent for its vehicles with effect from 1 January.

Audi took this decision due to an escalating supply-chain-related input and operational costs, accelerating the need for a price correction while maintaining the brand's premium price positioning.

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As per Federation of Automobile Dealers Associations (Fada) data, the company sold 43,859 units in December 2023, while holding 14.97 per cent of the market share in the PV vertical, up from 37,190 units and 13.08 per cent market share in the same period in 2022.

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Published January 21st, 2024 at 16:50 IST

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