Tata Motors Ltd. on Friday said it will raise the prices of its passenger vehicles effective April 1.
The average increase is about Rs9, 000 ( $198 – ex-showrooms), with prices varying from city to city and model to model.Utility vehicles prices would go up by between 13,000 to 36,000 rupees, the company said.
The companies said they are facing intense pressure on their margins and bottomline due to rising input costs.
“Despite continuous cost control initiatives, the company is being forced to take these increases on account of (a) steep rise in input costs,” the company said.
“Steel prices will continue to increase in the near future due to a rise in the cost of raw materials. But the demand for steel will go up,” Nerurkar had said, adding prices of raw materials such as coking coal were showing upward trend.
Similarly, a Hyundai Motor India Limited (HMIL) spokesperson said: “We are also considering a price hike but we have not finalised.”
Car sales in India hit a record high in February, driven by a burgeoning middle class and easier access to loans, but a hike in interest rates and a jump in input costs due to higher global commodity prices remain concerns for the sector.