Tata, other carmakers to hike prices from next year

Tata Motors today announced an across-the-board increase in the prices of its passenger vehicles range by up to Rs25,000, starting January 2018. The company attributed the proposed increase in prices to rising input costs.

''The changing market conditions, rising input costs and various external economic factors have compelled us to consider the price increase. We are optimistic on maintaining our growth trajectory in the coming year on the back of our robust product portfolio like Tiago, Hexa, Tigor and the recently launched Nexon.'' According to Mayank Pareek, president, passenger vehicle business, Tata Motors.

The introductory prices of the recently launched lifestyle compact SUV, Nexon, which comes with Level Next design, performance and technology features, will be ending by 31 December and this entire range will also witness a price hike from January 2018 by up to Rs25,000.

In fact, most of the major automakers in the country are going to increase prices of their models from next month citing high input costs.

Toyota was the first to announce a 3-per cent price hike in January while Mahindra & Mahindra announced 1.5-3 per cent increment in the prices of its passenger vehicles.

Ford proposes to increase prices of its models between 1 per cent and 3 per cent while Honda cars will see a price hike of up to 2 per cent.

Tata, meanwhile, has announced its year-end offer campaign, which includes insurance and exchange benefits of up to Rsone lakh along with up to 100 per cent finance. Other carmakers have also announced such year-end offers as discounts from Rs21,200 to Rs1.5 lakh on Honda cars, depending on the model and variant selection.

While some companies are offering these discounts to attract more customers, a few manufacturers are also throwing these offers to clean out its inventory.