Tata Motors Considering Price Increase For Passenger Vehicles From January

TATA Motors is considering increasing passenger vehicle prices

from next month in order to make its model range compliant

with stricter emission norms which kick in from April I next year,

according to a top company official.

Tata Motors Managing Director - Passenger Vehicle and Electric Vehicles,

Shailesh Chandra was quoted saying by PTI that the price revision would

also offset the impact of commodity prices, which have remained high

for the most part of the year.

“The regulatory change will have its impact on the cost. Even the real

impact of softening of commodity prices is only going to come from next

quarter and we still have the residual impact of the commodity

escalation that we have seen during the year,” Chandra told PTI.

He noted that even though battery prices have gone up, the same was

not passed on to the market.

"So, we are evaluating a price increase basis some of the residual

effect[s] that is left as far as the commodity prices are concerned.

Battery prices and new regulations have also impacted the EV side,”

Chandra said.

Besides, there is a cost involved in making the model range transition to

conform to new emission norms, he added

“We are exploring [a] potential price increase next month because of

these factors for both ICE (internal combustion engine) and EVs (electric

vehicles),” Chandra said.

From April 1, 2023, vehicles will need to have an on-board self-diagnostic

device to monitor the real-time driving emission levels. The device will

constantly monitor key parts for meeting emission standards such as the

iS So Deed

We are exploring [a] potential price increase next month because of

these factors for both ICE (internal combustion engine) and EVs (electric

vehicles),’ Chandra said.

From April 1, 2023, vehicles will need to have an on-board self-diagnostic

device to monitor the real-time driving emission levels. The device will

constantly monitor key parts for meeting emission standards such as the

catalytic converter and oxygen sensors, to keep a close watch on

emissions.

Tata Motors sells a range of models like Punch, Nexon, Harrier, ana safari

in the domestic market. It leads the electric vehicle segment with

products like Tiago EV and Nexon EV.

Tata is one of the many car makers to announce an increase in prices.

Last week, Maruti Suzuki too announced that it would increase vehicle

prices from January.