Tata Motors likely to increase prices of its cars next week

Tata Motors likely to increase prices of its cars next week

Tata Motors may increase the prices of its passenger vehicles across the entire range. The hike aims to establish a balance with the steep rise in the procurement cost of essential materials like steel.

“We have seen a very steep increase in the prices of steel and precious metals over the last one year. The financial impact of the increase in commodity prices is in the range of 8-8.5 per cent of our revenues in the past one year,” Shailesh Chandra, President of the Passenger Vehicles Business Unit at Tata Motors, was quoted as saying by PTI.

“From the company realisation perspective, we have passed on only 2.5 per cent. From an ex-showroom perspective this would be around 3 per cent, so there is a big gap to the extent of increase that has happened (in the input costs) and what we have been able to pass on to the market,” Chandra was quoted by PTI. “But with the gap still remaining and the prices of essential commodities still remaining high, we are now forced to take a price hike from next week,” he added.

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