Planning to buy Tata vehicles? Get ready to pay more
What's the story
India's largest commercial vehicle manufacturer, Tata Motors, has announced a price hike of up to 2% across its range, effective from April 1, 2025. The decision comes as part of the company's strategy to offset rising input costs. The exact increase will depend on the specific model and variant of the vehicle. This comes after a similar price adjustment by Tata Motors in January this year.
Price adjustment
Maruti Suzuki also announces price increase
In a related development, India's largest carmaker Maruti Suzuki has also announced a price hike. The company will increase vehicle prices by up to 4%, starting April. The decision comes due to rising input costs and operational expenses. The exact increase will depend on the model of the car. Despite efforts to minimize customer impact through cost optimization, some increased costs may need to be passed on to consumers.
Market trends
Global trade tensions could lead to more price hikes
Experts believe that other automakers might also announce price hikes amid rising global trade tensions. These trade disputes could raise costs for car manufacturing and infrastructure development. The ongoing trade war between major developed economies is pushing prices higher, making consumers spend less, and forcing manufacturers to pass on increased raw material costs to consumers.
Impact
Indian passenger vehicle sales slow amid economic challenges
Sales of passenger vehicles in India have been sluggish in recent months due to weak urban consumer demand and rising inflation. These factors have prompted many consumers to postpone their vehicle purchases. According to industry forecasts, a moderate growth rate of 5% is expected in FY25, reflecting weak demand for passenger vehicles. This trend could be further affected by the price hikes announced by Tata Motors and Maruti Suzuki.