Tata Motors to hike passenger vehicle, EV prices from February 1: Details here

Tata Motors, India’s leading auto manufacturer, announced on Sunday, January 21, its decision to implement an average price hike of up to 0.7% on all passenger vehicles, including electric variants, with effect from next month.

This increase will be effective February 1, 2024, and is being taken to partially offset the rise in input cost, Tata Motors said in a statement. The company is grappling with escalating input costs, despite reporting positive global wholesale growth earlier this month.

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Moreover, the increase will be implemented across the complete spectrum of passenger vehicles-- including electric variants--encompassing well-known models such as Punch, Altoz, Tiago, Nexon, Harrier and Safari among others in the passenger lineup.

The company had on July 3 last year raised prices across all its vehicle models.

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The auto manufacturer disclosed a marginal 1.73% decrease in its global sales for November 2023, reporting a total of 74,172 units compared to 75,478 units in the corresponding month of the previous year. The domestic market also experienced a slight dip, with total sales reaching 72,647 units, reflecting a 1% decline from the 73,467 units recorded in November 2022, as stated in the company's regulatory filing.

Last Wednesday, the company urged the Indian government not to cut taxes on hybrid cars as they are more polluting than pure electrics, countering calls from Toyota for lower levies, reported Reuters.

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"Any further incentivisation of hybrids will be a detriment to the climate goals and nation's economy," Tata wrote in a confidential letter to the department, the report said.

Moreover, Tata Motors is not the only auto manufacturer to hike its car prices. Maruti Suzuki on January 16 announced a hike in the prices of its cars in India. The company attributed the price hike to the rise in costs due to overall inflation and increased commodity prices.

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"While the Company makes maximum efforts to reduce cost and offset the increase, it may have to pass on some increase to the market. This price shall vary across models," the auto manufacturer said in a release. The price hike was announced in November last year but it came into effect from January 16, 2023.