Saar: They are bound to increase by up to 2.2 per cent.
It seems Tata Motors has decided that it will play the price hike game only in months that begin with the alphabet A. In April this year, the homegrown automaker increased the prices of its passenger vehicles by up to Rs 60,000. Back then Tata Motors said that the steep hike is to ensure fewer fluctuations in price during the ongoing fiscal year. Well, that doesn’t seem to be the case. The company has now announced that from August 2018, it will hike the prices of its passenger vehicles by up to 2.2 per cent.
In a press release, Mayank Pareek, president, passenger vehicles business unit, Tata Motors Ltd., said:
“We have been working on cost cutting, but the problem of input cost pressure is piling up and we will be taking a price increase on our passenger vehicles by August.”
In April, he said that the price hike was due to various external factors and changing market conditions. Back then, Tata Motors was producing a total of eleven models in India. That count has dropped to eight as manufacturing of Indica, Indigo and Nano has been halted for good.
How much extra will you end up paying from August onwards will be dependent on the model and variant you opt for. Presently, the Tata Hexa is the most expensive product in the company’s Indian portfolio. The range-topping variant of the seven-seater is currently priced at Rs 17.89 lakh (ex-showroom Delhi). If we assume that this variant gets the maximum bump in price, it will cost nearly Rs 38,350 more, taking the total well over the Rs 18 lakh mark.
Tata Motors said that the last price hike did not impact the growth in sales numbers and it expects the same this time around as well. Over the past two years, the company has been outpacing the average industry growth. This is due to the introduction of new Tata products such as the Tiago hatchback, Tigor sedan and the Nexon SUV.
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