Rising commodity costs to drive price hike in coming weeks: Tata Motors PV

New Delhi: Tata Motors Passenger Vehicles Ltd (TMPVL) plans to raise vehicle prices in the coming weeks as sustained increases in commodity costs continue to pressure margins, Managing Director and CEO Shailesh Chandra said.

Chandra said the company has been facing commodity cost pressures for nearly a year, with prices of precious metals and copper remaining elevated. “Overall, if you see the impact of commodity price increase, it has been for us about 2 per cent plus of our revenues,” he noted while responding to a query on a potential price hike.

Reiterating the company’s intent, Chandra said an announcement on the price increase would be made in the coming weeks, though he did not disclose the likely extent of the hike.

Market leader Maruti Suzuki India has said it is reviewing the possibility of a price increase due to rising commodity costs. Senior Executive Officer (Marketing & Sales) Partho Banerjee recently described the surge in precious metal prices as “phenomenal,” adding that while the company is trying to absorb part of the cost increase, it may eventually have to pass on some of the burden to customers.

Hyundai Motor India, meanwhile, has already implemented a price hike in January, primarily on its Venue model. The company’s Head of Investor Relations, Hariharan KS, said Hyundai will continue to closely monitor commodity price trends amid heightened volatility in precious metals and other inputs.

Automakers have been grappling with fluctuating input costs, prompting several to reassess pricing strategies in a competitive yet cost-sensitive market.