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At present, a big news is coming out from the Indian automobile market where the country’s leading automobile manufacturer Tata Motors has given a big shock of inflation to its customers. Just before the upcoming major festive season, the company has officially announced a major increase in the prices of its entire passenger vehicle range. Tata Motors vehicles are now going to become more expensive by Rs 25,000 from September 1. This is going to have a direct impact on the budget of the common man who is planning to buy a car. Due to this stir in the auto sector, a discussion has started among the customers as to why the companies have to increase the prices again and again.
New pricing system will be applicable on Tata Motors vehicles
According to the official information given by Tata Motors Passenger Vehicles Limited (TMPV), this latest price increase will be effective across the country from September 1. The effect of this decision of the company will be seen on the vehicles of both petrol, diesel i.e. internal combustion engine (ICE) and electric vehicles (EV) segments included in Tata’s portfolio. That means, if you are thinking of buying any popular Tata car or SUV, you will have to shell out more for it. However, the company has also clarified that the exact amount of the increase will be decided separately based on each model and its different variants, so that the additional burden on customers can be balanced.
Prices of which vehicles will change
The scope of this price hike includes Tata Motors’ entry-level small hatchback car Tiago, stylish compact sedan Tigor, popular micro SUV Punch, premium hatchback Altroz, and the segment’s popular SUV Nexon. Apart from this, the company’s modern coupe designed vehicles like new Curve (Curvv), powerful Safari and Harrier are also part of the expensive list. Not just conventional fuel models, customers will also have to pay more to buy Tata’s eco-friendly electric vehicles like Tiago EV, Punch EV, Nexon EV and the recently discussed Curve EV and Harrier EV. This is the second major increase in prices by Tata Motors in the last few months, which has increased the concern of middle class car buyers.
What is the main reason behind increasing the prices?
Automobile experts and market analysts believe that it is becoming difficult for vehicle manufacturers to handle the continuous increase in input costs i.e. the cost of raw materials. Tata Motors says that due to rising prices of steel, aluminum and other essential components as well as persistent inflationary pressure, operational costs have increased significantly. The company said that for some time now, a large part of the increasing expenses was being absorbed by Tata Motors itself so that there is no huge burden on the customers. But the cost pressure has increased so much that now it has become a compulsion to transfer a part of this increased expenditure to the customers. It becomes necessary for vehicle manufacturers to take this step to preserve their operating margins.
Festive season demand and impact on auto market
Every year in India, with the beginning of the festive season from the month of September, there is a huge rush of customers in the automobile market. During big festivals like Dhanteras and Diwali, people consider it auspicious to buy new cars and car companies also try to increase their sales during this period through bumper discounts, offers and new model launches. At such a time, the increase in the prices of vehicles is being considered as a big shock for the buyers. However, auto sector experts also believe that a slight increase in prices does not have much impact on the festive enthusiasm, as Indian consumers prefer the age-old tradition of shopping during festivals.
Maruti and Hyundai have also increased the prices
Tata Motors is not the only company that has increased the prices of its vehicles before the festive season, but this has become a widespread trend in the passenger vehicle market of the country. The country’s largest car manufacturer Maruti Suzuki has also increased the prices of its vehicles by up to Rs 30,000 from this month. Apart from this, Hyundai Motor India has also announced to increase the prices of its portfolio by up to 1 percent from September. The same argument of all these companies is that due to fluctuations in global commodity prices and rising production costs, they are forced to make frequent price revisions.
What is the advice for customers
If you are also planning to bring home a new Tata car or SUV for your family this festive season, then this is a great opportunity for you to book the car of your choice before September 1. By doing this you can avoid this additional increase of up to Rs 25,000 and get the vehicle at the old prices only. Apart from this, you can also save a lot in this inflationary period by taking advantage of the stock clearance discounts going on at various dealerships. Keeping a close eye on these continuous changes taking place in the auto market will prove beneficial for every discerning customer.