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Tata Motors has announced a price hike of up to ₹ 26,000 across its various model range. This hike in the price of the cars will start from today and will be different for different models.
The company had already announced a price hike on its commercial vehicles last month and the current increase has been announced only on its passenger vehicle range. The brand has, however, confirmed that the current increase in the cost won't be applied to those bookings that have been made on or before January 21, 2021.
Tata Motors has announced a price hike of up to ₹ 26,000 across its various model range. This hike in the price of the cars will start from today and will be different for different models. The company had already announced a price hike on its commercial vehicles last month and the current increase has been announced only on its passenger vehicle range. The brand has, however, confirmed that the current increase in the cost won't be applied to those bookings that have been made on or before January 21, 2021.
Hike in the prices of vehicles happens in the auto industry at the beginning of every year due to various reasons. The increase in the cost of materials regulates the prices and then there are other factors like an increase in the price of diesel that affects the transportation cost and salary revisions in the company. In an official statement, the company said that rising costs of input and material costs of steel, semi-conductors, as well as, the precious metals have compelled the brand to distribute some of the cost to customers.
Demand for passenger vehicle range of Tata Motors including cars and SUVs have grown by 39 per cent in the first three quarters of FY21 as compared to the demand in FY20 during the same period. Speaking of the third quarter of FY21, the brand also recorded its highest sales in the last 33 quarters and is now working on liquidating the supply chain and increase its output to meet the increased demand.
Apart from Tata, there are other companies as well that have been announcing price hikes for the new year. Brands like BMW India and Audi are also increasing the prices from 2021 in the luxury car segment. Brands like Maruti Suzuki, Hyundai, Mahindra, and Honda are also a few other brands that have increased prices from January 1. In the two-wheeler segment, Hero MotoCorp and Jawa Motorcycles are also planning to hike prices from the coming month and people can also expect a number of new announcements in the near future.
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