Tata Motors on Monday said it will increase prices of its passenger vehicles by up to Rs 25,000 from January to offset the impact of rising input costs.
The changing market conditions, rising input costs and various external economic factors have compelled us to consider the price increase.Mayank Pareek, President, Passenger Vehicle Business, Tata Motors
The introductory prices of the recently launched compact SUV Nexon will be ending by 31 December and this entire range will also witness a price hike from January 2018 by up to Rs 25,000, the company said.
Various automakers like Toyota Kirloskar Motor, Honda Cars India, Skoda and Isuzu have already announced their decision to hike prices from January next year.
Toyota Kirloskar Motor had earlier said that it is planning to increase prices of its models by up to 3 percent from January. Honda Cars India has also said it will increase prices of its models by up to Rs 25,000 from January, as Business Today reported.
Skoda Auto India had earlier announced a price hike of 2-3 per cent on all its models.
Passenger vehicle sales in India rose by 14.29 percent in November mainly due to a low base during the same month last year on account of demonetisation.
Robust sales of utility vehicles and discounts have also helped sales of passenger vehicles (PVs) grow last month to 2,75,417 units as against 2,40,983 units in November last year, according the Society of Indian Automobile Manufacturers (SIAM).
"We had demonetisation last November. So, we have grown on a pretty low base of the same period last year. Also, heavy discounting plays a role during this period," SIAM Director General Vishnu Mathur said.
(With inputs from PTI)
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