Mumbai: Mumbai-based automaker Tata Motors on Tuesday said it will increase the prices of its passenger vehicles by an average of 0.9 per cent from Wednesday (January 19) to partially offset the impact of increase in input cost.
“Effective January 19, 2022, an average increase of 0.9 per cent will be implemented, depending on the variant and model,” the automaker said in a statement.
While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through the minimal price hike, it added.
However, Tata Motors said it has also taken a reduction of up to Rs 10,000 on specific variants, in response to feedback from customers. Besides, it said the hike would have no impact on customers who have booked their vehicles on or before January 18, 2022 as they would be offered price protection.
Tata Motors sells cars like Altroz, Tiago, Tigor, Punch, Harrier, Safari, among others.
Auto companies have been increasing the prices of their vehicles over the last year owing to the rise in input costs. Last month, Tata Motors had said that it would increase the price of its commercial vehicles in the range of 2.5 per cent from January 1, 2022.
On Saturday, the country’s largest carmaker Maruti Suzuki India said it has increased the prices of its models by up to 4.3 per cent to partially offset the impact of the rise in input costs. The company had already hiked prices three times during the previous year — by 1.4 per cent in January 2021, 1.6 per cent in April and 1.9 per cent in September.
Automobile companies have been stating that they have been forced to hike prices due to the increase in the cost of essential commodities like steel, aluminum, copper, plastic and precious metals over the last year.