Recently Tata Motors has announced a price hike of up to 3 percent across its vehicle lineup, including electric models, effective January.
Tata Motors Announced Price Hike In New Year
After the announcement was made public, the shares of Tata Motors Limited gained over a percent to Rs 810 in morning trade on December 10.
Basically, this is the third this year that the vehicle maker has announced a price hike.
It appears to be largely driven by a sharp rise in costs from global commodity prices, high import duties on raw materials, and supply chain challenges.
So far, Nexon and Punch are the most popular models in the passenger vehicle segment by Tata Motors.
Both of these currently have starting prices of Rs 8.00 lakh and Rs 6.13 lakh (ex-showroom), respectively.
Henceforth, the base variants of these models could cost up to Rs 8.24 lakh and Rs 6.31 lakh, considering this latest price hike.
In the meantime, the timing of these price hikes come as Indian automakers face slowing demand following years of growth, prompting higher discounts and moderated dealer sales.
Following The Global Trend
Tata Motors rival and also the country’s largest four-wheeler manufacturer, Maruti Suzuki has also raised the prices of vehicles by 4 percent from January 2025 to offset the rising input cost recently.
The newly-listed Hyundai Motor India is also not much behind as it has also announced the raise prices of all models by Rs 25,000 from January 1, 2025,.
It includes all the popular models such as Venue, Creta, and Ioniq 5 EV.
Besides this, the vehicle maker also plans to launch the Creta EV early next year, bolstering its EV lineup.
In addition to this, the luxury carmakers like Mini, Audi, BMW, and Mercedes-Benz have also confirmed the price hikes for the upcoming year.
It seems that the rising costs across manufacturing and logistics have left automakers with no choice but to pass on some of the pinch to consumers.
It is confirmed by a broader trend seen across global auto markets.
The shares of the company were trading at Rs 807 around 10 am, higher by 1.13 percent from the last close on the NSE.
It has been the worst for the Tata Motors shares among all four-wheeler OEMs as it has witnessed losses of over 22 percent in the last three months.
