Indian auto giant, Tata Motors has announced the price hike on its entire range of cars. The manufacturer has announced a price hike between 2 to 2.2 per cent effective from August 2018. Also, this hike will be additional to the 3 per cent price hike in April by the manufacturer. The reason behind this hike is said to be the result of increasing input costs, according to Tata Motors.
Announcing the price hike, Mayank Pareek, President Passenger Vehicles Business Unit, Tata Motors 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. The company had taken a price hike in April but the input costs continue to rise, mostly on account of increased commodity prices. Roughly it will be 2 per cent to 2.2 per cent. This will be over and above the 3 per cent increase in April. The price hike will be across all models, although quantum will depend upon specific models. What we achieved in quarter one was despite the price hike we undertook in April. So we are confident of maintaining the sales momentum. In the last 28 months we have been outperforming the market. In this year's quarter one, while the industry grew 13.1 per cent, we have grown by 52 per cent.”
Earlier, in April the company increased the costs of its passenger cars in India by up to Rs 60,000. The price hike will be across all models, although quantum will depend upon specific models. Currently, Tata Motors sells a range of vehicles starting from entry level small car Nano to premium SUV Hexa with price ranging from Rs 2.36 lakh to Rs 17.89 lakh (ex-showroom, New Delhi).
Also, the automaker registered by a massive 63 per cent growth in passenger vehicle segment in June 2018 as compared to June 2017 and showcased a growth of 54 per cent overall in the month of June 2018 as compared to the same time period in 2017. The major contributors in this sales growth by Tata Motors include the newly added products by the automaker in its line-up such as the Tiago hatchback, the Tigor sub-compact sedan, the Nexon sub-compact SUV and the Hexa seven-seater SUV.
Apart from this, Tata Motors has also announced an investment of about Rs 7,000 crores over the next three years for their near future endeavors in India. This will be the biggest investment by the automaker in the passenger vehicle business. The investment will be made to ready the Pune and Sanand plants for the next-gen Alpha and Omega platforms which are set to manufacture and roll-out all of Tata’s future vehicles. All the future car models by the automaker will be developed on these two platforms only as a part of the 2.0 plan by the manufacturer.
Also, Tata Motors is working on a number of new projects as well as new models to be launched in the near future in the country including the much anticipated upcoming Land-Rover based H5X SUV Harrier.
Stay tuned to V3cars.com for further updates from Tata Motors.