Tata Motors to Raise Car Prices by Up to 3% Starting January, Shares in Focus

10 Dec 2024

Tata Motors' shares were in discussion today after the automaker said plans to raise the prices of its cars, including electric vehicles, by as much as 3% starting in January 2025. The move is part of a broader trend where multiple automakers are increasing prices to cope with rising costs. The Mumbai-based automaker said in a release that the price hike is being done to compensate for the increase in input costs and inflation.

Domestic automakers are grappling with higher costs driven by soaring global commodity prices, increased import duties on raw materials, and on-going supply chain challenges. Tata Motors, known for its compact SUVs such as the 'Nexon' and 'Punch,' has implemented two price hikes on its vehicles this year.

Carmakers have also faced difficulties due to a decline in sales, as demand for new vehicles has tapered off following years of growth. As a result, manufacturers have been offering bigger discounts and adjusting their sales agreements with dealers.