Tata Motors to raise prices of passenger vehicles for second time in 2023
This marks the second time in 2023 that the Indian automaker has implemented such a price hike
Tata Motors has announced its decision to increase the prices of its passenger vehicles, citing rising input costs and regulatory changes that have made car production more expensive.
This marks the second time in 2023 that the Indian automaker has implemented such a price hike.
The Indian automaker has stated that the weighted average increase in prices for its passenger vehicles will be 0.6 percent, varying depending on the model and variant.
The price hike is set to take effect from May 1, as per the automaker's recent press release.
This marks the second time in 2023 that Tata Motors has raised prices, with the earlier increase being 1.2 percent in January, also due to rising input costs and regulatory changes.
Additionally, the implementation of Bharat Stage VI norms at the start of this month has led to an increase in the cost of vehicles across segments in India.
The government has mandated that automakers must equip their vehicles with a special device to monitor emissions, resulting in additional expenses.
As a result, car manufacturers such as Tata Motors have been forced to raise prices of their passenger vehicles due to rising input costs and regulatory changes.
India has recorded its highest-ever sales of passenger cars in the fiscal year that ended on March 31, 2023, even with multiple price hikes throughout the year.
The surge in sales was largely driven by the demand for larger and more expensive sports utility vehicles (SUVs).
Tata Motors' Nexon and Punch SUVs were among the top-selling cars in India during 2022, contributing significantly to the automaker's success.
According to the Federation of Automobile Dealers Associations (FADA), auto sales growth in India is projected to slow down to a low single-digit percentage in the current fiscal year.
The slowdown is expected to be caused primarily by factors such as inflation, recent price hikes by automakers, and regulatory changes.
This prediction comes in contrast to the high sales figures that were achieved in the previous fiscal year, which were buoyed by strong demand for larger SUVs like Tata Motors' Nexon and Punch models.