NEW DELHI: Home-grown auto major Tata Motors on Saturday announced increasing prices of its passenger vehicles (PV) range by up to Rs 25,000, starting April 2019. The company said that the hike in prices is due to rising input costs and external economic conditions.
“The changing market conditions, rising input costs and various external economic factors have compelled us to consider this price increase. We are confident of maintaining our growth trajectory in the coming months on the back of our robust portfolio consisting of segment-leading products like Tiago, Hexa, Tigor, Nexon and the Harrier,” said Mayank Pareek, president, Passenger Vehicle Unit, Tata Motors.
Tata Motors will be increasing prices of all its passenger vehicles by up to Rs 25,000, starting April 2019.
The automaker currently sells a range of PVs starting from the Nano to premium SUV Hexa priced between Rs 2.36 lakh and Rs 18.37 lakh.
With this, Tata joins the likes of Toyota and Jaguar Land Rover, which have also stated that they would hike prices of select models from April. While Toyota did not specify the quantum of a price hike, JLR said it will increase prices of select products by up to 4 per cent.
Almost all the OEMs (original equipment manufacturers) had announced price hikes in December that were to come into effect from January 1, 2019. However, owing to poor sales, most of the manufacturers continued to offer big discounts to reduce inventory level lying with the dealer showrooms.
According to the Federation of Automobile Dealers’ Association, passenger vehicle inventory levels saw a sharp rise to 50-60 days during February from 35-40 days in January.
Among the two-wheeler players, only Japanese superbike maker Kawasaki has so far announced a 7 per cent price hike on select motorcycle models in the country.
“India Kawasaki Motors (IKM) strives hard to keep the price of its models very competitive in the India market. However, due to the increasing costs of raw materials and fluctuations in foreign exchange rates, IKM is compelled to change the price of our model,” the bike maker said.
Rising input costs push up prices
- The hike in prices is due to rising input costs and external economic factors, according to Tata Motors.
- Almost all OEMs had announced price hikes in December that were to come into effect from January 1.
- However, poor sales forced them to continue to offer big discounts to reduce inventory levels at dealer showrooms
- PV inventory levels saw a sharp rise to 50-60 days during February from 35-40 days in January, according to FADA.