Tata Motors to raise prices as input costs jump

Tata Motors to raise prices as input costs jump

Mumbai: Tata Motors said on Friday it would increase prices on some of its passenger and utility vehicles due to mounting input costs.

The increase in prices will be effective 1 April, the company said in a statement.

“Despite continuous cost control initiatives, the company is being forced to take these increases on account of (a) steep rise in input costs," the company said.

The price increase in passenger cars will be in the range of Rs7,000 ($155) to Rs15,000, or about 2%. Utility vehicles prices would go up by between Rs13,000 to 36,000, the company said.

Car sales in India hit a record high in February, driven by a burgeoning middle class and easier access to loans, but a hike in interest rates and a jump in input costs due to higher global commodity prices remain concerns for the sector.

Earlier this week, the company said its global vehicle sales rose 14% in February to 102,411 units.

Tata Motors, part of India’s salt-to-software conglomerate Tata group, manufactures commercial and utility vehicles, and cars including the Nano, touted as the world’s cheapest car.