Tata Motors to hike prices from April
NEW DELHI: Indian auto major Tata Motors will hike the prices of its commercial vehicles range by 2-2.5%, depending upon the individual model and variant, from April 1, it said on Tuesday.
The imminent rise in prices of the vehicles comes against the backdrop of an increase in the prices of commodities, such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, Tata Motors said in a regulatory filing.
“While the company has initiated action to absorb a significant portion of the increased costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion through a minimised price hike,” the company said.
Last week, Mercedes-Benz India had said it would increase prices of the entire range by up to 3% from April 1 to partially offset the impact of the increase in input costs.
Tata Motors is also the largest seller of electric cars in India and is betting aggressively on this space.
The company has already completed the formation of its electric vehicle subsidiary Tata Passenger Electric Mobility (TPEML), which will focus only on passenger electric and hybrid vehicles.
In October 2021, Tata Motors raised $1 billion from investors TPG Rise Climate and ADQ by agreeing to sell an 11-15% stake in TPEML.
The deal values the subsidiary at more than $9 billion and the capital infusion is expected around March 2022. Tata Motors plans to invest $2 billion into the subsidiary over the next five years.