Tata Motors on Monday said it will hike the prices of its passenger vehicles by an average of 0.8 per cent from August 3, depending on the variant and model.
However, the company said it will offer protection from the price increase to vehicles of its 'New Forever' range that will be retailed on or before August 31.
Tata Motors' car portfolio comprises of Tiago, Tigor, Nexon, Altroz, Harrier, among others.
The price increase is likely because of the rise in input costs. Shailesh Chandra, President Passenger Vehicles Business Unit, Tata Motors had last week told news agency PTI that the company had been able to pass on only a small part of the increase in input costs to the customers so far.
"We have seen a very steep increase in the prices of steel and precious metals over the last one year. The financial impact of the increase in commodity prices is in the range of 8-8.5 per cent of our revenues in the past one year," Chandra said.
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He said the company had been able to mitigate some of the impact of rising input costs by running various cost reduction initiatives as it wanted to avoid passing on a big quantum of price hike to customers.
"But with the gap still remaining and the prices of essential commodities still remaining high, we are now forced to take a price hike from next week," Chandra added.
Prices of precious metals like rhodium and palladium have gone up significantly over the last one year. Steel prices have also remained high during the period.
In July, the country's largest carmaker Maruti Suzuki India also hiked prices of hatchback Swift and CNG variants of other models by up to Rs 15,000 to counter increase in input costs.
Similarly, Honda also announced price increase for its entire model range in India from August, as it looks to offset the impact of increase in commodity prices.
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