Price hikes have been typical this year, and with the pandemic affecting every industry, manufacturers are likely to raise prices more than once or twice. Tata Motors recently announced a small price increase on its passenger vehicles. The corporation has not given a specific reason, however, it is due to rising input costs, as previously mentioned. This is the third time this year that we see a price hike from Tata Motors. They announced that effective 3rd August, they will increase the prices of their passenger vehicles, on an average of 0.8%, depending on the variant and model.
There is a silver lining
Tata Motors states that because of the strong response from customers for its vehicles, it has decided that there would be price protection offered on vehicles retailed/billed on or before August 31 of this year. “Continuing with its commitment towards customers, and acknowledging the faith and confidence they have reposed in Tata Motors’ New Forever range, the company will offer protection from the price increase to vehicles that will be retailed on or before 31st August’21” the company stated. For the wellbeing of its business and supporting ecosystem, Tata Motors had recently announced that it has set in motion a comprehensive ‘Business Agility Plan’ to protect and serve the interests of its customers, dealers, and suppliers.
Tata Motors had previously hinted that a price rise was in the offing, Shailesh Chandra, President of the Passenger Vehicles Business Unit at Tata Motors, had blamed hike in input costs. “We have seen a very steep increase in the prices of steel and precious metals over the last one year. The financial impact of the increase in commodity prices is in the range of 8-8.5% of our revenues in the past year,” he had said.
Tata Motor recently hiked the prices of their model such as Tiago, Tigor, Nexon, Nexon EV, and Harrier in January and then again in May. They have now joined with several carmakers in the country who have announced price hikes starting August. The list includes the likes of Honda Cars India and Toyota.