Tata Motors climbed to the 3rd spot from the sale point of view recently. The success of Tiago has enabled the company to secure the position. Now that Tata is preparing for the launch of the Hexa in January, the company has announced a second price hike across its vehicle range in India. In October, Tata announced that the price will be hiked across its range by up to Rs. 12,000. Now the Indian automotive giant has announced that the prices will be revised by up to Rs. 25,000 across the line-up.
The company has cited macroeconomic factors in the country that forced the company to increase the prices from Rs. 5,000 to up to Rs. 25,000 depending on the model. This will be the third price hike for the Tiago since its launch earlier this year. The most successful car from Tata has already received a price revision of Rs. 6,000 in August and then again in October.
According to Mr. Mayank Pareek, President, Passenger Vehicle Business, Tata Motors, “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.”
The price rise should not come as a surprise as many manufacturers try to push the slowing sales in December. The market tends to wait for the new year to get a new car. Interestingly, the car market is going through a slump post demonetization, which has affected a lot of vehicles. The price hike will also set a base for Tata Hexa, which will be launched in January.
Tata has some big launches scheduled for the next year. After the Hexa, the company will launch the compact SUV, Nexon and the Tiago based sedan, Kite V. The company is also working on the AMT version of the Tiago as well as a sport version of the hatchback soon.