New Delhi: Tata Motors Ltd said Thursday it will hike car prices by up to ₹ 40,000 from 1 January 2019 to offset the impact of rising input costs and increase in fuel prices. The company’s car models range from entry-level Nano to the premium Hexa sports utility vehicle (SUV), which are currently priced between ₹ 2.36 lakh and ₹ 17.97 lakh (ex-showroom Delhi). Its newest car, the Tata Harrier, will launch some time in January.
The car price hike of up to ₹ 40,000 (depending on the model and city) will be applicable to all Tata cars and will come into effect on 1 January 2019.
“The changing market conditions, rising input costs and various external economic factors have compelled us to consider this price increase," Tata Motors president (passenger vehicles) Mayank Pareek said in a statement. Despite the price hike, Tata Motors is “optimistic on maintaining our growth trajectory in the coming year on the back of our robust portfolio", said Pareek. “Early 2019 will also mark the entrance of our most awaited SUV—the Harrier."
The Tata Harrier, which is based on Land Rover’s D8 Architecture, will take on popular products like Jeep Compass and Mahindra XUV500. Tata Motors is betting big on Tata Harrier to place itself among the top carmakers on a sustainable basis.
Tata Motors joins other companies, such as Maruti Suzuki, Toyota Kirloskar Motors Pvt. Ltd, BMW India and Isuzu India, which have also said they would increase car prices from January, citing impact of increase in commodity prices and foreign exchange rates.