Several carmakers had already announced a price hike across their model range to be effective from January 2021 and now, Tata Motors too have announced a price hike across its entire model range with immediate effect. Prices of the Tiago, Tigor, Altroz, Nexon and Harrier have gone up by up to INR 26,000. These new prices will be applicable for all bookings of the above models from January 22, 2021. Bookings made until January 21 will however be locked at the old price.
Tata Motors have however not revealed the exact price hike for each of the individual models and individual variants of each model. Stay tuned to this space for more updates on that. Price revisions at this time of the year have almost become a norm in the automotive industry. Tata Motors have said that the primary reason for the price hike is the rise in commodity prices and various other input costs. In an official statement, the company said,
"Rising input costs and material costs of steel, precious metals and semi-conductors have compelled the company to pass on a part of the cost to customers."
Several other manufacturers like Maruti Suzuki, Kia and Hyundai, Volkswagen and Skoda, all have hiked prices across their range. A few carmakers such as Skoda and Mercedes-Benz even introduced a few new features on their vehicles to compensate for the price hike. In terms of sales, Tata Motors witnessed some positive growth in 2020. Demand for the company's passenger vehicles increased by 39% in the first three quarters of FY21 compared to the same time period in FY20.
In fact, in the third quarter of FY21, the company registered its highest ever sales in the last 33 quarters and is working on liquidating the supply chain and ramp up its output to meet the increased demand. Going ahead, Tata Motors has a very important launch lined up for India - the new 2021 Tata Safari as the brand's new flagship product. This is the revival of an iconic name in Tata Motors lineup and it could sure take the market by a storm.