Tuesday, December 13, 2016
By Manoj Kumawat
Tata Motors to Hike Price of its Portfolio From January 2017
Domestic car maker Tata Motors has announced to hike the price of its entire portfolio varying from Rs. 5,000 to Rs. 25,000 in Indian car market with effect from January 1, 2017. The decision regarding hike in price seems to be taken out after keeping in concern the changing economic scenario in country. Industry experts believe that this announcement by company will impact the pricing policy for company’s upcoming SUV Hexa, which is slated for launch on January 18, 2017. With this, it is for the first time that Tiago hatchback by company has also succeed in making its position among the first ten best selling cars in Indian car market during the month of November 2016, regardless of demonetization.
Commenting on the decision of hike in prices Mr. Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, said, “The increase in prices of raw material commodities like steel, aluminium, copper and rubber over a period of time has put a lot of pressure on us and as a resultant we are forced to hike prices of our passenger vehicles. We are seeing good demand for our cars and have witnessed month on month growth owing to the TIAGO. We are gearing up for our next launch of the HEXA in January 2017.”
The practice of hiking in price is common practice adopted by car makers by the end of year. This is mainly done to make the cost of production compatible to cost of raw materials. It is believed that in coming days soon we will have same type of announcements by various other car manufacturers.
