Tata Motors has made the decision to raise the prices of its passenger cars, citing increased input costs and costlier manufacture due to regulatory changes. The Indian manufacturer has applied this price increase twice already in 2023.
The Indian automaker said that depending on the model and version, the weighted average price increase for its passenger vehicles will be 0.6 per cent. According to a recent press release from the company, the price increase will come into effect from May 1. Tata Motors has increased prices twice in 2023, the first time by 1.2 per cent in January, also as a result of growing input costs and regulatory changes.
In addition, the cost of automobiles across segments has soared in India as a result of the implementation of Bharat Stage VI rules at the beginning of this month. Automakers will incur greater costs as a result of the government’s requirement that they install an expensive special device to track emissions in each car. As a result of growing input costs and regulatory changes, automakers like Tata Motors have had to increase the price of their passenger vehicles.
Even with numerous price increases during the year, India reported its highest-ever sales of passenger automobiles in the fiscal year that concluded on March 31, 2023. The demand for larger, more expensive sports utility vehicles (SUVs) was a major factor in the sales boom. The Nexon and Punch SUVs from Tata Motors were among the best-selling vehicles in India in 2022, greatly aiding the prosperity of the carmaker.
The Federation of Automobile Dealers Associations (FADA) predicts that India’s vehicle sales growth would drop this fiscal year to a low single-digit percentage. It is anticipated that issues including inflation, recent price increases by automakers, and regulatory changes will be the main causes of the downturn. This forecast contrasts with the high sales figures attained in the previous fiscal year, which were boosted by a robust market for larger SUVs like the Nexon and Punch models from Tata Motors.
