Tata Motors customers may soon face a price hike on passengers vehicles. The company’s managing direcor and CEO, shailesh chandra, recently said during a quarterly earning call that rising commodity prices are increasing production costs. he also explained that the cost pressure has become significant, making it necessary for the company to revise the vehicle prices. the increase is expected to affect the several passengers vehicle models. Tata Motors has not yet announced the exact date or percentage of the price hike. customers planning to buy a tata car may consider making their purchase soon before the new prices come into effect in the coming months.
Price Hike of Tata Cars
Shailesh Chandra said that rising prices of precious metals like gold, silver and cooper have increased the company’s expenses. he mentioned that company’s expenses. he mentioned that tata motor has been facing pressure from increasing commodity costs for almost a year. the prices of key metals, including the copper, continue to remain high which is affecting the overall production cost of vehicles. He further explained that the rise in commodity prices is impacting more than 2 percent of the company’s total revenue. due to this continuous cost pressure, the company is reviewing its pricing strategy and may revise the prices to balance rising manufacturing expenses.
The CEO confirmed that vehicle prices will be increase, but he did not share details about the extent of the hike. He stated that the company will make an official announcement in the coming weeks. this indicated that Tata Motors customers may son have to pay higher prices for their preferred vehicles. The company is likely reviewing market conditions and rising production costs before finalizing the price increase. customers who are planning to buy a tata car may consider making their purchase soon, as the new pricing is expected to be announced shortly by the company.
Tata Motors is not the only company affected by rising commodity prices, Market leader Maruti Suzuki has also acknowledged the issue and said it is considering the price hike, Partho Banerjee, senior executive officer of the marketing and sales at Maruti Suzuki, stated that the increase in prices of precious metals has been unusual and significant. Meanwhile, Hyundai motor India has already increased prices of some of its cars, especially the venue model, in January Hyundai’s head of investor relations, Hariharan KS, said that volatility in commodity prices continues to remain a major concern for the automobile industry.
