Tata Motors is likely to increase the vehicle prices from next month as its model range will become compliant with stricter emission norms that will roll in from April 1. This comes days after Maruti Suzuki said that it will increase the prices of its vehicles from January, citing inflation and regulatory requirements.
Tata Motors Managing Director - Passenger Vehicle and Electric Vehicles, Shailesh Chandra, said that the price increase would offset the impact of commodity prices. ''The regulatory change will have its impact on the cost. Even the real impact of softening of commodity prices is only going to come from next quarter and we still have the residual impact of the commodity escalation that we have seen during the year,'' said Chandra in an interaction with news agency PTI.
Chandra said that batter prices have also gone up but the same has not been passed on to the market. He said that they are evaluating a price increase based on the residual effect that is left as far as the commodity prices are concerned. Chandra said that battery prices and new regulations have also impacted the EV side. There is also cost involved in making the model range transition to conform to new emission norms, he said.
''We are exploring potential price increase next month because of these factors for both ICE and EVs,'' Chandra said.
From April 1, 2023, vehicles will need to have an on-board self-diagnostic device to monitor real-time emission levels. If the emissions exceed the parameters, the device will indicate through warning lights that the vehicle should be submitted for service. Vehicles will also carry programmed fuel injectors that would control the timing and amount of fuel injected into the petrol engine in order to control the level of fuel burnt. Semiconductors will also require upgrading.
Tata Motors includes vehicles like Punch, Harrier. Safari, Nexon, as well as Tiago EV and Nexon EV.
(With agency inputs)
Also read: Maruti Suzuki plans to increase car prices from January 2023, cites inflation
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