Tata Motors has announced a price hike for all its products (passenger vehicle category), starting from the month of January 2020. The revised pricing is mainly coming as the result of increased commodity rates and implementation of BS6 emission norms. As per reports, the price hike will come at “a rate higher than usual”.
Mayank Pareek, President of Tata Motors Passenger Vehicles, commented that the introduction of BS6 products pays a heavy toll on revenue, but has forced the brand to go forward with the price hike. The exact rise in prices was not shared, but was told to be on the higher side as compared to the revisions that have taken place over the past few years.
He also added that Tata Motors is currently working on a clear-cut data analysis regarding the price hike. The two key factors (BS6 implementation and supplier charges) saw their impact happening together in the automotive industry and Tata Motors may not be the only vehicle brand readying a raised price chart for its product portfolio.
Usually, price hikes for four-wheelers start at a rate of Rs 10,000 to Rs 15,000 and can go up to even Rs 50,000, depending on the ex-showroom base price. However, effective implementation of BS6 will not be possible at that rate. In fact, BS6 implementation has caused two-wheeler prices to shoot up at the rate mentioned before.
The main reason for the price hike accompanying BS6 implementation is the extensive rework required in engine design (especially for diesel power plants). In the case of entry-level two-wheelers and similar low-capacity vehicles, BS6 emission standards can be met by just a new fuel-injection system and a reworked exhaust system. Even still, two-wheelers are (or will be) going through a significant price hike.
Tata Motors currently has a wide range of desirable products in its portfolio, such as the Tiago hatchback, Nexon compact-SUV, Tigor compact-sedan, Harrier five-seater SUV, Hexa seven-seater SUV, etc. The company has also unveiled its latest offering, the Tata Altroz premium hatchback. Tata Motors is following an aggressive product strategy with multiple launches planned for the months to come.
While the Altroz will be launched at a competitive price tag, the Indian automotive giant will also introduce the Gravitas seven-seater SUV (based on the Tata Harrier) and a compact-SUV codenamed H2X soon. Coming back to the price hike, the company will be sharing a detailed report on the updated price range for all its products in a few weeks’ time.