Tata Motors and Renault India Pvt Ltd are gearing up to increase the prices of its passenger vehicles from 1 January 2017 in order to offset increased input costs. Tata Motors will be increasing prices of its passenger vehicles starting from Rs 5,000 up to Rs 25,000, depending on the model. Renault India has not mentioned the exact range of price increase but confirmed they could go up by up to 3 percent.
"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. We are seeing good demand for our cars and have witnessed month on month growth owing to the Tiago. We are gearing up for our next launch of the Hexa in January 2017," said Mayank Pareek, President, Passenger Vehicle Business at Tata Motors in a statement.
"We are currently working on the exact details but it is going to be in the range of 1.5 to 3 percent from January next month," Renault India Operations Country CEO and Managing Director Sumit Sawhney told PTI. "In the past few months, the prices of steel have gone up significantly globally and it is impacting us as well," he added.
Tata Motors' passenger vehicle range starts with the Nano priced at Rs 2.18 lakh to Aria MPV which is priced at Rs 17.29 lakh. Renault India sells a range of vehicles from hatchback Kwid with starting price of Rs. 2.64 lakh to SUV Duster tagged at Rs. 13.77 lakh, all prices ex-showroom Delhi. The Tiago and Kwid are the bread and butter models of Tata Motors and Renault India, respectively. It remains to be seen what impact it will have on the sales of these popular cars after the price hike.
Earlier this month, Toyota Kirloskar Motor announced price hike of its vehicles from 1 January 2017, owing to the increasing manufacturing cost and currency fluctuation. The quantum of the price hike will be by up to 3 percent.