 "Tata Motors announces 0.7% price hike on passenger vehicles from Feb 1")
Auto giant Tata Motors has become the latest carmaker to join the price hike chorus, announcing a 0.7 per cent increase across its passenger vehicle portfolio, including electric vehicles. This price adjustment will come into effect on February 1, 2024, and aims to partially offset the ever-rising input costs.
This move follows Tata Motors' earlier decision in April 2023 to raise the prices of its passenger vehicle (PV) range by approximately 0.6 per cent, starting from 1 May.
The automotive industry has witnessed a trend, with various manufacturers, including industry giant Maruti Suzuki, resorting to similar price hikes in the early months of FY24. Maruti Suzuki cited inflation and heightened commodity prices as reasons for their decision, with the actual percentage of the price hike varying across models.
Adding to the chorus, German luxury carmaker Audi declared a price increase of up to 2 per cent for its vehicles effective 1 January. The rationale provided by Audi pointed to the escalating supply-chain-related input and operational costs, necessitating a price correction while maintaining the brand's premium price positioning.
According to Federation of Automobile Dealers Associations (Fada) data, the company sold 43,859 units in December 2023, capturing 14.97 per cent of the market share in the passenger vehicle segment, up from 37,190 units and 13.08 per cent market share in December 2022.