Tata Motors has officially declared a 0.7% increase in the prices of its passenger vehicles, including electric vehicles (EVs), starting from February 1, 2024
Reason Behind the Price Adjustment
The company release states, “This increase will be effective February 1, 2024, and is being taken to partially offset the rise in input costs.” Tata Motors, like many in the automotive industry, faces the challenge of managing increased input expenses, prompting this measured adjustment.
Sales Report Highlights
Earlier this month, Tata Motors reported a notable 9% YoY increase in its overall global wholesales, reaching 338,177 units in Q3FY24.
The commercial vehicles and Tata Daewoo range contributed to this growth with global wholesales of 98,679 units, marking a 1% YoY increase. In the passenger vehicles segment, Tata Motors achieved a global wholesales figure of 138,455 units, reflecting a commendable 5% YoY growth.
Jaguar Land Rover (JLR), under the Tata Motors umbrella, exhibited a remarkable 27% YoY surge in global wholesales, totaling 101,043 units in Q3 FY24.
Breaking it down, Jaguar and Land Rover reported wholesales of 12,149 and 88,894 units, respectively. It’s essential to note that these figures exclude the volume of CJLR, a joint venture between JLR and Chery Automobiles and an unconsolidated subsidiary of JLR.
Industry-Wide Trend
Tata Motors is not the sole player in the automotive domain opting for a price adjustment. Maruti Suzuki India, on January 16, announced a similar move, citing overall inflation and increased commodity prices as the driving factors.
The company stated, “While the Company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market. This price shall vary across models.”
The price hike, declared in November the previous year, officially came into effect on January 16, 2023.