Tata Motors has announced that it has hiked prices of its passenger vehicle range, effective from the 22n day of January, 2021. Rising input costs and material costs of steel, precious metals and semi-conductors have compelled the company to pass on a part of the cost to customers. Tata Motors has marginally increased prices from 0 to INR 26,000, depending on the variant. Continuing its commitment towards customers, the company will also offer protection from the price increase to customers who have booked Tata passenger vehicles on or before 21st January.
Tata Motors PV Business has been witnessing strong demand for its ‘New Forever’ range of Cars & SUVs and grew by 39% in FY21 over FY20.
In Q3FY21, Tata Motors also registered the highest ever sales in the last 33 quarters and continues to work on debottlenecking the supply chain and ramp up its output to meet the increased demand. As reported earlier, a few other companies have also been facing similar issues about the shortage of semiconductor supply and have been forced to hold back their production for a few days. Mahindra & Mahindra, Ford, Fiat, Nissan etc. are a few names that have been facing this issue.
Semiconductors are used to build microprocessors, microcontrollers, programmable logic circuits ( PLC) etc. that are vital in the operation of the infotainment system, collision sensing system, airbag sensors etc. The disruption of supply chains across the world due to the unfortunate pandemic has resulted in a shortage of semiconductors.
Talking about Tata Motors, although they have been forced to announce a price hike, they had 2 launches for January lined up. First up, the Tata Altroz turbo petrol was unveiled on the 13th of January 2021 and has been officially launched today starting from INR 7.73 lakhs and going all the way up to INR 8.85 lakhs ( all prices, ex-showroom ).
Next, Tata Motors is set to launch the much-awaited Tata Safari which is effectively a 7-seater Harrier on the 26th of January 2021. Tata has been regularly rolling out teasers to hook everybody up until the launch and the Safari will take on the likes of the Mahindra XUV 500, the Jeep Compass facelift, MG Hector Plus and even the lower half of Toyota Innova Crysta’s portfolio.