After increasing their CV range prices from 1st Jan 2021, Tata Motors has now announced increase in price of their PV range
Tata Motors has increased prices of all their passenger cars – Tiago, Tigor, Altroz, Nexon and Harrier. Price hike is from Rs 0 to Rs 26,000 – depending on the variant. Price hike is valid only for those customers who have booked Tata cars post 21st Jan 2021.
Tata said, “Continuing its commitment towards customers, the Company will also offer protection from the price increase to customers who have booked Tata passenger vehicles on or before 21st January.”
Reason for price hike
Tata Motors said that the price hike is mainly due to increase in material and other input costs, expenses related to transition to BS6 and impact of forex valuations. Till now, the company had been absorbing the increase in costs. However, as these continue to rise, it has become necessary to increase prices of commercial vehicles. A part of the increased input costs will be passed on to customers in the form of price revisions.
Tata current portfolio has some popular products such as Altroz, Nexon and Tiago. All of these have received good safety ratings in Global NCAP crash tests, which is one of the key reasons for their rising sales.
In the PV segment, most other carmakers have announced price hikes, effective January 2020. India’s largest carmaker, Maruti Suzuki has announced that prices will be increased across range and will be substantial. India’s second largest carmaker Hyundai has also announced hike in prices across its entire range.
New entrant Kia, which is now placed at fourth spot, will be increasing prices of Seltos and Sonet SUVs from January. However, Kia has not mentioned any price hike for its Carnival MPV. Similar announcements about price hike have been made by Mahindra, MG, Honda, Renault, BMW, and Ford.
Tata CV Range Price Hike
India’s largest commercial vehicle manufacturer, Tata Motors had increased prices across the range from January 01, 2021. The company’s commercial vehicle portfolio comprises M&HCV, I&LCV, SCV & buses. Price hike will vary depending on the product, variant and fuel type.
However, Tata Motors has assured that its commercial vehicles will continue to offer best value to customers. Its primary benefits such as low cost of ownership and profit making potential for vehicle owners will still be best in class even with the price hike.
As rise in input costs is an industry-wide development, other commercial vehicle manufacturers are also expected to increase prices in the near future. In the commercial vehicle segment, Tata’s primary rival is Mahindra, followed by Ashok Leyland. In November, Tata CV sales were 17,584 units, followed by Mahindra at 16,876 and Ashok Leyland at 6,060 units.