Tata cars get expensive amid rise in cost on raw materials

If you are planning to buy a TATA Motors car, this news is for you. Amid the global semiconductor shortage, the company has increased the price of its passenger vehicles with effect from Tuesday, i.e. August 3, 2021.

The hike on cars will average around 0.8 percent depending on the model and variant. The company said the price hike is a part of the carmaker's 'Business Agility Plan' to protect and service the interests of its customers, dealers and suppliers.

The portfolio of Tata Motors includes models like Tiago, Tigor, Nexon, Altroz, Harrier. According to the company, it has hiked the prices due to the increasing cost of raw materials. If you are also planning to buy a car from Tata Motors, you should also check how much the prices have been hiked.

Tata Motors President, Passenger Vehicles Business Unit, Shailesh Chandra told a news agency last week that the company has passed on just a small part of the burden of rising raw material costs to customers. According to the company, the company took this decision due to the increasing prices of raw materials in the market.

'We have seen a huge increase in the price of steel and other precious metals in the last one year. The increase in commodity prices in the last one year has had a financial impact of 8 to 8.5 per cent on our revenues," he had said.

He said that the company has already taken several other measures to minimize the impact of rising costs so that the customers are not burdened much. “But the gap remained due to high prices of essential commodities. So we are forced to increase the price," Chandra said.

It is worth noting that in the first month of July, Maruti Suzuki India had increased the prices of many of its models by up to Rs 15,000. Similarly, Honda has also announced to increase the prices of all its models from August.