Tata Motors announced price increases across its passenger vehicles, which will come into effect from Saturday. Tata joins the likes of Renault, which hiked prices of its February-launched model Kigor on Friday, as well as Volvo, in what has been the ‘third wave’ of price hikes this year in India’s auto industry.
Tata’s price hikes average 1.8 per cent, depending on the variant and model. The company has, however, offered price protection to its customers who have already booked or will book a vehicle within tonight. With deliveries delayed and many dealerships shut, the company calls this its ‘Business Agility Plan’ to protect the interests of customers, dealers and suppliers.
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“Increase in prices of commodities, such as steel and precious metals, necessitates us to pass on a part of it through increase in price of our products,” said Shailesh Chandra, president (passenger vehicles Business), Tata Motors. “Keeping in mind the interest of customers, who have booked cars already, we are offering price protection for all bookings done till date (on or before 7th May 2021),” he added.
Pandemic pressures, especially increase in the price of raw materials from steel to semiconductors, as well as supply chokeholds, have seen auto brands across the spectrum in India increasing their prices right from the new year. A second round kicked off with the start of the new financial year in April, with market leader Maruti Suzuki increasing prices by up to 6 per cent. It was joined with an upward revisioning of rates by the likes of Ford, Toyota, Nissan, etc.
