After Maruti, now Tata Motors raises car prices marginally
Tata Motorsannounced that it has decided to hike prices of its cars from January 19, 2022 due to rise in input costs.
- Not only Tata Motors,
Maruti Suzukihad also raised car priceson January 15 in the range of 0.1% to 4.3 %.
- Rise in fuel prices, commodity prices like steel, shortage of semiconductors and a possible third wave that could impact demand and production operations are some of the factors affecting the automobile industry.
AdvertisementMumbai-based carmaker Tata Motors has increased its car prices by 0.9% on its passenger vehicle range depending on the car variant and model effective January 19, 2022. Meanwhile, customers who booked cars on or before January 18, 2022 will have no impact.
Not only Tata Motors, Maruti Suzuki had also raised car prices on January 15 in the range of 0.1% to 4.3 %.
At the same time, the Nexon and Harrier-carmaker also took a reduction of upto ₹10,000 on specific models, in response to feedback from customers.
“While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this price hike,” said Tata Motors in a statement.
Rise in fuel prices, commodity prices like steel, shortage of semiconductors and a possible third wave that could impact demand and production operations are some of the factors affecting the automobile industry.
Currently, automobile companies are reeling with poor sales. Passenger car sales in India have been falling for four months in a row since September. Two wheeler sales are at a decade low.
The recent declines are part of a much longer trend of weakness in India’s demand for automobiles that has persisted long before the pandemic hit.
These wider ramifications for the economy, due to the slump in India’s automobile sector, is one of the reasons why the upcoming budget is expected to provide some relief to India’s ailing
Shares of the company were trading down by 0.7% at ₹521.20 per share on January 18.
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