Tata Motors has announced a price hike for all its models apart from the Aria and the Nano.
The hike ranges between Rs. 7,000 and Rs. 12,000 across all models, variants and will be applicable to models such as the Indica eV2, Indigo CS, Vista, Manza, Sumo Gold, Grande and Safari. The price hike has been effective with effect from February 10th, 2012.
“The high input costs have been impacting us for quite some time. We have decided to pass on some burden to our customers. The quantum of the hike will vary between Rs 7,000 and Rs 12,000 depending on the model,” Tata spokesperson was quoted as saying by a news agency.
CarToq spoke to a Chennai based Tata dealer who confirmed that the price hike was implemented last Friday. The dealer quickly added that a major price hike is expected in March which will make the price of cars go up by roughly Rs. 80,000 particularly for the diesel models.
Many car makers have hiked the prices of their models in January. Maruti Suzuki and General Motors (GM) India had hiked prices of their cars last month. Maruti Suzuki hiked the prices by 0.3 percent to 3.4 percent across all its models except for the Dzire. Read more: Maruti Suzaki hikes prices across all models!
GM India hiked the prices by 0.5 percent to 1.75 percent for its models including Spark, Beat and Cruze while models such as Aveo, Aveo U-VA, Optra and Captiva prices were not hiked. Mahindra too, increased the prices of its cars such as Verito, Scorpio, Xylo, XUV500 and Bolero by up to three percent. Read more: Mahindra to increase prices of all cars by 2-3% in January 2012!
The auto industry is already witnessing a slight slump in car sales and such price hikes may further affect the sales. Besides, there is also a possibility of a tax hike on diesel cars post the Union Budget 2012.