Tata Motors has announced that it will hike the prices of its passenger vehicles, including electric vehicles (EVs), by an average of 0.7% from February 1, 2024. The company said that the price increase is necessary to partially offset the rise in input costs, such as raw materials, fuel, and freight.
The price hike will affect all the models and variants of Tata Motors’ passenger vehicle portfolio, which comprises seven internal combustion engine (ICE) vehicles and four EVs. The ICE vehicles include the Tiago, Tigor, Punch, Altroz, Nexon, Harrier, and Safari, while the EVs include the Nexon EV, Tigor EV, Tiago EV, and the recently launched Punch EV.
The company has not revealed the exact revised prices for each vehicle but said that they will be communicated to the customers and dealers in due course. Currently, the retail prices of Tata Motors’ passenger vehicles range from ₹5.60 lakh (Tiago) to ₹25.01 lakh (Safari) (ex-showroom).
While 0.7% sounds like a negligible hike, it is the average of the total hike that is being implemented. The actual hike will be varied as per the different models. Since raw materials and freight are being considered as the reason for the hike, the larger vehicles like the Nexon, Harrier and Safari could see a bigger percentage of the hike as compared to the smaller models.
Tata Motors is the latest automaker to join the price increase bandwagon, as several other manufacturers, such as Maruti Suzuki, Hyundai, Kia, Mahindra, and Toyota, have also announced similar moves in the past few months, citing inflation and rising commodity prices as the main reasons.
Tata Motors reported a 9% year-on-year increase in its global wholesales to 3,38,177 units in the third quarter of FY 2023-24, with its passenger vehicle segment registering a 5% growth to 1,38,455 units. The company also claimed to have achieved its highest-ever market share of 10.6% in the domestic passenger vehicle industry in the same quarter.