Tata Motors Price Hike Announced: Price Increase Of Upto Rs 21,000 Effective From January 2022

Tata Motors is set to hike prices of all its cars in the Indian market. The price hike will be effective from 19 January 2022 and is only a marginal price hike with an average increase of just about 0.9 percent across the entire range of Tata passenger vehicles.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

In the last two years, the automotive industry has been on a rollercoaster ride, thanks to COVID-19, its variants, and their effects on the market. Sales numbers plummeted from an all-time high in 2019 to extremely low figures in 2020 and then in 2021, the industry showed some signs of recovery, before falling again and then rising again.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

While most automotive brands survived this rollercoaster ride, there was one phenomenon found commonly across all car manufacturers - price hikes. There were several price hikes in 2021 and now even in 2022, major automotive manufacturers have hiked prices, albeit only marginally.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

Maruti Suzuki recently announced a small increase in the prices of its cars and then Tata motors announced a price hike of around 2.5 percent on its commercial vehicles. Now Tata Motors has announced a price hike that will be applicable on all of its passenger vehicles.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

A 0.9 percent price hike isn't a lot when the actual prices of Tata's vehicles are considered. Tata Motors' passenger vehicles range starts off with the Tiago that currently has a starting price of Rs 4.99 lakh and goes all the way to the Safari. The top-spec variant of the Tata Safari currently retails at Rs 23.19 lakh, ex-showroom.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

Given these current prices, the price hike is expected to range between Rs 4,500 and Rs 21,000. However, exact prices are yet to be confirmed. Tata Motors has confirmed that some variants of some products will see price cuts of up to Rs 10,000. These price cuts have been arrived at after taking customer feedback into consideration.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

The reason for the price hike is simple - rising input costs. Thanks to the pandemic, the cost of raw materials has increased drastically and this has affected several ancillary industries that support the automotive industry. As a result, suppliers have increased prices of critical components required to build cars.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

This has led to a steep rise in the cost of manufacturing. Even though the rise in manufacturing costs is steep, Tata Motors will bear the brunt of most of it and only a marginal price hike is being passed on to buyers. Tata has made sure to mention that there is a price protection offer wherein all cars booked on or before 18 January 2022 will be unaffected by the hike even if delivered at a later date.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

An official statement from Tata Motors said, While the company is absorbing a significant portion of the increased costs, the steep rise in overall input costs has compelled it to pass on some proportion through this minimal price hike."

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

Tata Motors currently retails seven models in the Indian market - Tiago, Altroz, Tigor, Punch, Nexon, Harrier & Safari. All of these models will be affected by the price hike. On 19 January 2022, Tata Motors will be adding two new variants to its lineup. The Tata Tiago CNG and Tata Tigor CNG will be launched. Stay tuned to know more about the CNG-fueled hatchback and notchback.

Tata Motors Price Hike Announced: Price Increase Between Rs 4,500 & Rs 21,000 Effective From January 2022

Thoughts On Tata Motors Price Hike Being Announced

The price hike announced by Tata Motors is only marginal and isn't big enough to stop buyers from purchasing its cars. However, we have to keep in mind that this is the second such price hike in less than six months, and if this trend of price hikes continues, buyers might look at other options.

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Article Published On: Tuesday, January 18, 2022, 16:51 [IST]
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