Tata Motors passenger cars to be pricier in 2022 to offset rising input costs
Only recently, Tata Motors announced a price revision for its commercial vehicle range starting in 2022. This will be in the range of up to 2.5 percent. The auto manufacturer has now followed up with a similar announcement for its passenger vehicle range. Tata Motors CV business places the manufacturer atop the chart.
Tata Cars Price Hike Jan 2022
An increase in raw material, commodity costs, and input costs is a constant. The situation is further stressed owing to a shortage in acquiring chips. A delay in parts procurement has kept manufacturers’ on their toes, and also resulted in adjusting production.
Apart from reduced total volumes for the industry, this too forces a manufacturer’s hand in terms of pricing. Tata Safari AT variants have already seen a price hike in the range of 2k – 7k this month. Prices of Nexon was also increased in the last 1 month.
Prices of all Tata cars will increase again in Jan 2022 – including Tiago, Tigor, Punch, Altroz, Nexon, Harrier and Safari. Tata Electric cars Nexon EV and Tigor EV will also get a price hike. It will be the first price hike of newly launched Tata Punch.
Tata Motors Passenger car sales
On the PV front, improvements have been reported in recent months. This has afforded Tata Motors improved consistency with an increase 6 month average. On the sales front, Tata Motors has outsold Kia, and Mahindra through 2021. On the back of sales thus far in the fiscal, overall growth will be seen. With passenger vehicle segments, Tata electric car sales too has been reported on a positive note.
While a large number of new companies have entered the electric two-wheeler market offering a large assortment of scooters, mopeds and some motorcycles, activity around the electric car market isn’t quite as frenzied.
In fact, for now it looks intentional with more manufacturers holding out instead of participating. This makes Tata Motors one of the early movers in the space. Tata Nexon and Tigor EV sales continue to strengthen the groundwork for the company
Continued price revisions
The auto industry is a strange place. Price revisions are consistently frequent. And the longer one waits, the costlier a car gets. This natural pattern continues to push car prices up, acting as a constant reminder to those in the market considering a car purchase.
With 2022 around the corner, one can expect new manufacturing year cars to be a tad bit costlier. This is usually followed up by a price revision when the fiscal ends 3 months later. Keeping in mind price revision trends, one can envision how much pricier a delayed car purchase decision tends to be within just 6 months. It’s currently unspecified what the price hike range will be but the number can be expected to be an average similar to preceding revisions.