Tata Motors announces price hike of passenger vehicles from May 8

Tata Motors Limited has announced that it will increase prices of its passenger vehicles, averaging 1.8 per cent, depending upon the variant and model, with effect from May 8, 2021. 

It will offer protection from the price increase to customers, who have booked Tata passenger vehicles on or before May 7, 2021. For the wellbeing of its business and supporting ecosystem, the company had recently announced that it has set in motion a comprehensive ‘business agility plan’ to protect and serve the interests of its customers, dealers & suppliers. 

As per the management, this price increase is led due to an increase in the prices of commodities, such as steel and precious metals, which are a part of the necessary inputs required for manufacturing of passenger vehicles. 

For the month of April 2021, the company registered domestic sales of 39,530 vehicles as against 66,609 vehicles in March 2021 i.e. de-growth of 41 per cent. The passenger vehicles volume de-grew by 15 per cent on an MoM basis from 29,654 vehicles in March 2021 to 25,095 vehicles in April 2021. 

With lockdown imposed in the majority part of India due to the second wave of COVID-19 and this decision of price hike, the impact on demand of passenger vehicles of the company in the near term might be a matter of concern. 

Tata Motors is a leading global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses. It is India’s largest and the only OEM offering an extensive range of integrated, smart and e-mobility solutions. 

At 2.28 pm on Friday, the stock of Tata Motors was trading at Rs 304.10, up by 0.98 per cent against its previous close of Rs 301.15 on BSE.