Tata Motors to increase prices across passenger vehicle range, Including ICE and electric models

Tata Motors disclosed its intention on Monday to increase prices for both internal combustion engine (ICE) and electric models across its passenger vehicle lineup. The planned price hike, averaging 0.6 per cent for all models and variants, is scheduled to take effect from July 17. The company attributed the need for this increase to offset the enduring impact of past fluctuations in input costs.

To provide some relief to customers, the Indian automotive giant announced that individuals who book their vehicles before July 16 and receive deliveries by July 31 will be shielded from the upcoming price hike. 

Furthermore, Tata Motors recently published its sales data for May, indicating a marginal year-on-year growth of one percent in total domestic sales. In May, they sold 80,383 units compared to 79,606 units during the same period last year.

The sales of domestic passenger vehicles, including electric vehicles, experienced a modest increase of five percent, reaching 47,235 units in May compared to 45,197 units in the corresponding month of the previous year.

Tata Motors achieved a remarkable milestone in the electric vehicle segment, recording its highest-ever quarterly sales of 19,346 units. This represents an impressive growth of 105 percent compared to the first quarter of the previous fiscal year (FY23). With the festive season approaching in the second half of the current fiscal quarter (Q2FY24), the company expects the demand for its passenger vehicles to remain strong.

The automaker has secured its position as the second-largest passenger vehicle maker in terms of sales footprint in India, trailing market leader Maruti Suzuki, riding on the success of its aggressive expansion strategy, focussed on targeted micro-markets to capture market share, according to its FY23 annual report.

To meet growing demand, Tata Motors plans to bolster its operations by expanding manufacturing capacity. The facility at Sanand, Gujarat, acquired from Ford, can produce 300,000 vehicles annually, which can be scaled to 420,000 units over time.

“We have successfully completed the onboarding of over 600 employees at the recently acquired Ford plant,” it added.

“The strategy to enhance sales through targeting micro-markets worked well... We added 227 outlets in FY23 to 1,410 at the end of the year, becoming the second largest sales network by an OEM in India. Ninety-nine percent of our dealers are profitable vis-à-vis 43% in FY20.”

“We expanded our service network to add 150 workshops in FY23, to a total of 855. We continued the thrust on sales enhancement and identified high total industry volumes in urban micro-market and rural areas via nuanced actions. In addition, we will drive focused initiative to drive EV and CNG sales,” the company said. It will also expand its sales and service capability in FY24. “We have retained the top SUV company rank for the second year. For FY23, the business posted revenues of ₹47,900 crore.”