Home-grown auto major Tata Motors today said it will hike prices of its passenger vehicles by up to Rs 25,000 from next month in order to offset increased input costs.
The company will be increasing prices of its passenger vehicles starting from Rs 5,000 up to Rs 25,000, depending on the model, Tata Motors said in a statement. The increase is effective January 1.
"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 result, we are forced to hike prices of our passenger vehicles," Tata Motors President (passenger vehicle business) Mayank Pareek said.
The company is witnessing good demand for its cars and has witnessed month-on-month growth on the back of the recently-launched Tiago, he added.
Tata Motors sells a range of passenger vehicles, including the entry-level small car Nano, the newly launched hatchback Tiago and crossover vehicle Aria, at a price range of Rs 2.18 lakh to Rs 17.29 lakh (ex-showroom Delhi).
Yesterday, Renault India announced plans to increase prices of its vehicles by up to 3 per cent from next month to offset increased input costs.
Earlier, Toyota Kirloskar Motor (TKM) had announced hike in prices of its vehicles by up to 3 per cent from next month to offset increased input cost and consistent upward trend in foreign exchange rates.