Tata Motors to hike prices of passenger vehicles by up to Rs 26,000

The company said increase in cost of raw materials such as steel, metals and semi-conductors compelled it to raise the prices of its vehicles
Tata Motors on Friday increased the prices of its passenger vehicle range.

The prices have risen up to Rs 26,000, depending on the variant. The company said in a statement that it will offer protection from higher prices to customers who have booked Tata passenger vehicles on or before January 21.

Tata Motors had earlier increased prices of its commercial vehicle range from January 1.

The company said increase in cost of raw materials such as steel, metals and semi-conductors compelled it to raise the prices of its vehicles. Market leader Maruti Suzuki also increased prices from January 10.

Raw material costs are hardening with the full impact of cumulative increases to be felt in Q4 of this financial year. Steel, aluminium, copper and rubber — key inputs for the auto industry — are all headed north.

Automakers also do not have much room left to absorb the hike in input cost because of losses incurred in the first two quarters of the fiscal year following the coronavirus outbreak.

Companies had registered zero sales in April and May due to the lock down induced by the government to counter the corona virus pandemic.

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