Tata Motors annouced a price hike of up to 3% across its vehicle range. Nexon and Punch models are among the most impacted by the hike
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Shares of Tata Motors Limited rose over 1% to Rs 810 in morning trade on December 10, following the announcement of a price hike of up to 3% across its vehicle range, including electric models, effective January 2025.
This price increase marks the third hike by the company this year, driven by rising global commodity prices, high import duties on raw materials, and supply chain disruptions.
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The Nexon and Punch models are among the most impacted by the hike. The base variants of these popular models, which are currently priced at Rs 8.00 lakh and Rs 6.13 lakh (ex-showroom) respectively, are expected to see their prices increase to Rs 8.24 lakh and Rs 6.31 lakh.
This price adjustment comes amid a slowdown in the auto sector, which has led automakers to offer higher discounts and adjust dealer sales strategies.
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Despite the price increase, Tata Motors has faced difficulties in recent months. Over the past three months, its stock has been one of the worst performers among major four-wheeler manufacturers, with a decline of more than 22%. Meanwhile, the broader auto sector has also struggled with rising input costs and weakened demand following a period of strong growth.
Tata Motors is not alone in raising prices. Maruti Suzuki, India’s largest car manufacturer, has announced a 4% price hike, effective January 2025, to combat rising input costs. Hyundai Motor India is also increasing prices across all models, including the Venue, Creta, and Ioniq 5 EV, while planning to launch the Creta EV next year.
Luxury carmakers, such as Audi, BMW, Mini, and Mercedes-Benz, are expected to follow suit with price hikes in the new year, reflecting a global trend in the auto industry to pass on rising manufacturing and logistical costs to consumers.
