Tata Motors on December 10 said that it will increase the price of its commercial vehicles effective January 1, 2024, up to 3 percent.
The price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles, the automaker said in a regulatory filing.
Tata Motors sells a range of passenger vehicles starting with hatchback Tiago to premium SUV Safari priced between Rs 5.6 lakh and Rs 25.94 lakh, however, had earlier notified the exchanges that they were mulling a price hike without specifying the quantum.
The company joins the likes of Maruti Suzuki, Mahindra & Mahindra, Honda and Audi among others which have also announced plans to increase vehicle prices in January.
India has mandated automakers to comply with stricter fuel efficiency norms from April this year and will also require all cars to have six airbags by October.
Meanwhile, even as key commodity prices have come off record levels, auto makers have been resorting to price hikes to shore up margins in a high-inflation environment.
Shares of Tata Motors on December 8 closed 1 percent lower at Rs 714.65 apiece on BSE while Sensex, Nifty 50 posted their longest weekly winning streak in three years, as they rallied to record highs on the back of strong macroeconomic data, a drop in oil prices and the Reserve Bank of India's (RBI) rate pause.
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