Tata Motors cars to become costlier in India soon
What's the story
Tata Motors Passenger Vehicles Ltd (TMPVL) is planning to raise car prices in the coming weeks. The decision comes in light of continuous pressure from rising commodity costs, especially precious metals and copper. The company's Managing Director and CEO Shailesh Chandra confirmed this during a quarterly earnings call. He said that the impact of rising commodity prices has been significant enough to affect their revenue by over 2% in the past year.
Cost impact
Precious metals and copper major contributors
Chandra acknowledged that the company has been dealing with rising commodity prices for nearly a year now. He specifically mentioned precious metals and copper as major contributors to this trend. The overall effect of these price increases on Tata Motors's cost structure has been significant enough to warrant a price revision for their vehicles. However, Chandra did not disclose any specific details about how much the prices would be hiked in his statement.
Industry trend
Price hikes across the industry
The rising commodity costs are not just affecting Tata Motors but other major carmakers as well. Market leader Maruti Suzuki is reviewing the need for a price hike due to these rising costs. Senior Executive Officer of Marketing and Sales, Partho Banerjee admitted that the increase in prices of precious metals has been "phenomenal." Hyundai Motor India has already raised prices in January, mainly for its Venue model.