India's auto major Tata Motors is planning to increase prices of its passenger vehicles during the festival season mainly to offset its rising input cost. This comes close to manufacturers like Mahindra & Mahindra, Hyundai and Maruti Suzuki increasing prices due to input cost.
Mayank Pareek, President of Tata Motors for the passenger vehicles business unit said, they will increase the prices and are currently working out the details of the price hikes. When asked when this will be implemented, he said it will be during the festive season.
The reason for the increase in prices by Tata Motors is mainly due to the rising operation cost and the company want to correct it. Moreover, Tata Motors said, they have not hiked the prices for a long time.
Tata Motors has a wide range of vehicles catering to different segments, which includes the entry level Nano to the utility vehicle Aria.
The company has vehicles which range in prices of Rs 2.15 lakh to Rs 16.3 lakh ex-showroom (Delhi).
Recently, another homegrown automaker, Mahindra & Mahindra, increased the prices on some of its passenger and small cars by 1 percent from the month of October 2016.
Hyundai had increased prices of its passenger cars as well and was effective from August 2016. Prices were upwards of Rs 20,000 across its portfolio.
Maruti Suzuki too increased the prices on various models by up to Rs 20,000.
Rising operating cost have made many manufacturers to offset the cost and with the festive season.