Tata Motors to raise prices of its passenger vehicles in January 2020
Tata Motors sold 10,400 units in November 2019, a drop of 39 percent, as against 16,982 units in the same month last year.
Tata Motors on Wednesday said it will increase prices of its passenger vehicles from January, primarily to offset the impact of upgrading its portfolio to conform to BS-VI emission norms. At present, the company sells products ranging from hatchback Tiago to SUV Harrier, priced between Rs 4.39 lakh and Rs 16.85 lakh (ex-showroom Delhi).
"With BS-VI products coming in, prices will increase from January," Tata Motors President (Passenger Vehicles Business Unit) Mayank Pareek told PTI in an interview. He declined to quantify the increase in prices but said the hike next month would be on a higher side, as compared to earlier price revisions taken by the company.
"We are working on the calculations...normally if any change happens, the prices go up by Rs 10,000-15,000. Now, two things are happening, one is BS-VI and there is also pressure from the rise in the commodity prices," Pareek said.
BS-VI emission norms in India are slated to kick in from April 1, 2020. On Tuesday, Maruti Suzuki India announced to increase prices of its models from January to offset rising input costs. Other automakers like Toyota, Mahindra & Mahindra, and Mercedes-Benz are also contemplating a similar move.
Hyundai Motor India and Honda Cars India, however, said they will not increase vehicle prices in January, but their products will see a price hike when BS-VI compliant models are introduced in the market.
Tata Motors will also be launching a premium hatchback, the Altroz early next year. Based on the new Agile Light Flexible Advanced (ALFA) arc platform, the car will take on the Hyundai Elite i20, Maruti Baleno, Honda Jazz, and the Toyota Glanza.
The car will be priced around Rs 6 lakh and will initially be offered with only a manual gearbox. A more premium offering with a dual-clutch automatic gearbox will be introduced at a later date.
Apart from that, Tata will be showcasing its premium SUV – Gravitas, at Auto Expo 2020. Positioned above the Harrier, the SUV will be based on the iconic Land Rover D8 platform.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Suman Singh)