Tata Motors has announced that with effect from January 1, its passenger vehicles will be dearer by Rs 5,000 up to Rs. 25,000, depending upon the models. The automaker has said that the reason for the hike in the prices of the vehicles is stated to be various macro-economic factors.
The reason for higher adjustment in vehicle prices is due to the rising input costs coupled with high prices of raw materials. Tata isn’t the only manufacturer to hike the prices to compensate for the increasing input costs. Toyota also recently announced an increase in prices by up to 3 per cent across all models in their range from January 2017.
Mayank Pareek, president, Passenger Vehicle Business, Tata Motors, said, “The increase in prices of raw material commodities like steel, aluminium, copper and rubber over a period of time has put a lot of pressure on us and as a result, we are forced to hike prices of our passenger vehicles. We are seeing good demand for our cars and have witnessed good growth owing to the Tiago. We are gearing up for our next launch of the Hexa in January 2017."
The Indian manufacturer is seeing steady sales figures thanks to its runaway success – the Tiago. Despite a few price hikes since its launch, the Tiago is soldering on with impressive demands amongst Indian buyers. Tata is currently focusing on new products which will arrive next year and includes its premium SUV – the Hexa, Kite 5 sedan, Nexon compact SUV and the Tiago automatic.
