10 Dec , 2024 By : Debdeep Gupta
Shares of Tata Motors Limited gained over a percent to Rs 810 in morning trade on December 10 after it announced a price hike of up to 3 percent across its vehicle lineup, including electric models, effective January.
This marks the company's third price increase this year, largely driven by a sharp rise in costs from global commodity prices, high import duties on raw materials, and supply chain challenges.
Tata Motors' most popular models in the passenger vehicle segment, the Nexon and Punch, currently have starting prices of Rs 8.00 lakh and Rs 6.13 lakh (ex-showroom), respectively. Following the upcoming price hike, the base variants of these models could cost up to Rs 8.24 lakh and Rs 6.31 lakh.
The price hikes come as Indian automakers face slowing demand following years of growth, prompting higher discounts and moderated dealer sales. Recently, Maruti Suzuki, the country's largest four-wheeler manufacturer, raised the prices of vehicles by 4 percent from January 2025 to offset the rising input cost.
Newly-listed Hyundai Motor India will raise prices of all models by Rs 25,000 from January 1, 2025, including popular models like Venue, Creta, and Ioniq 5 EV. The company also plans to launch the Creta EV early next year, bolstering its EV lineup.
Luxury carmakers such as Mini, Audi, BMW, and Mercedes-Benz have also confirmed price hikes for the new year. Rising costs across manufacturing and logistics have left automakers with no choice but to pass on some of the pinch to consumers, a broader trend seen across global auto markets.
At about 10 am, shares of the company were trading at Rs 807, higher by 1.13 percent from the last close on the NSE. Tata Motors shares have been the worst performers among all four-wheeler OEMs with losses of over 22 percent in the last three months.
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