Tata Motors announced price increase for its passenger vehicles at a weighted average of 1.1 percent effective from today, April 23, 2022
Continual vehicle price hikes are important to manufacturers when it comes to strategic pricing policy. Such price revisions are announced multiple times each year to ensure that the price burden to a customer isn’t too steep all at once. The most recent price revision announcement comes from Tata Motors.
From today, Tata passenger vehicles will be costlier. The weighted average increase is 1.1 percent, depending on the variant and model. Price revision is being implemented from today, April 23, 2022. This is the 3rd price hike announced by Tata Motors in 2022. Unlike earlier, there is no mention of price protection for customers in the latest announcement.
Tata Motors Price Hike April 2022 – No Price Protection
The current revision would partially offset the rise in input cost. Last month, Tata announced a price revision for its electric passenger vehicles. Both, Tata Nexon and Tigor EV price revisions make them costlier by upto 25 grands. Apart from this, about 5 weeks earlier, Tata already initiated a price hike of about 3 grands across a wide range of vehicles.
This was in tandem with industry practice wherein manufacturers increase price points once the new fiscal starts. The current revision comes in quick succession. However, this isn’t altogether unheard of. With a rise in input costs being a constant, continued price adjustments are necessitated. Prices of all Tata cars – Nexon, Punch, Safari, Harrier, Tiago, Altroz and Tigor have been increased from today.
Tata Motors 3rd Price Hike In 4 Months
A price increase no longer evokes a shock response considering increased price tags for ‘most anything we use on a daily basis. As expected, car price revisions were initiated at the start of the calendar year. This is in lieu of new model year cars that reach dealerships, and ongoing input cost increases.
Currently, Tata motors has now effectively increased their car prices 3 times in 2022. We can expect price tags to remain stable for a while. With Tata currently being the largest electric car seller here, the manufacturer also needs to deal with increasing battery cell costs.
Tata Motors sales
While manufacturers try to absorb input cost increases efficiently, there is a need to pass on a minimum burden to customers. In recent months, increasing input costs have been a major force that guides price revisions.
For 2022, Tata Motors has seen a great improvement in sales performance in the first quarter. CY 2022 Q1 sales stood at 1,23,053 units, averaging at 41k units sold each month. This was an improved result over the previous quarter, and YoY. YoY Q1 sales volume improved by 39,194 units, up from 83,859 units. The preceding quarter sales was reported at 99k units. In the last 6 months, Tata Motors has sold over 2.2 lakh units.
