Tata Motors announces fourth price hike in 2023; PVs, EVs to become expensive from July 17

Automobile manufacturer Tata Motors on Monday announced the fourth price hike in 2023, beginning July 17. The company has announced a marginal increase in prices by 0.6% across models and variants as the auto major continues to grapple with the rise in input costs. The price hike will be applicable for both ICE (internal combustion engine) and electric vehicles (EVs). This is the fourth time in the last six months, that the company has hiked prices across models and variants. In February, April and May the company hiked prices by 1.2%, 5% and 0.6% across models and variants, respectively, owing to higher input costs and compliance with BS-VI norms.

"Tata Motors, India's leading vehicle manufacturer has announced that it will increase prices of its passenger vehicles (ICE and EVs), effective July 17, 2023, on an average of 0.6% across models and variants. The price increase is to offset the residual impact of the past input costs," the company said.

Meanwhile, the company will be offering price protection to customers for bookings made up to July 16, and deliveries up to July 31.

The development comes two days after Tata Motors reported strong growth in its EV segment in the June quarter, despite a marginal increase in domestic sales. The company’s EV sales, during the quarter under review, surged by 105% to 19,346 units as against 9,446 units in the same period last year. Of this, the company sold 7,025 units in June, registering an increase in sales by 95%, as against 3,608 units in the same period last year.

"In the EV segment, the company posted its highest ever quarterly sales of 19,346 in Q1 FY24 registering a growth of ~105% over Q1 FY23. This growth is driven by a strong market response to Tiago EV while demand for other EVs was sustained," says Shailesh Chandra, MD, Tata Motors Passenger Vehicles Ltd and Tata Passengers Mobility Ltd.

However, the company’s domestic sales surged marginally by 2% to 2,22,345 units in the April to June quarter, thus missing analysts' estimates. Of this, the total sales in June stood at 80,383 units, thus registering a meagre 1% growth as against 79,606 units sold in the same period last year.

In the commercial vehicle segment, the auto major's sales declined by 15% to 85,795 units in the June quarter. The company’s commercial sales also remained subdued to 34,314 units, thus declining by 8% as against 34,314 units in the same period last year.

The company's passenger vehicle segment, however, posted strong growth of 8% to 1,40,450 units in the June quarter, buoyed by new launches and a strong SUV (sports utility vehicle) and EV portfolio.

"While SUVs continued to be the mainstay, contributing almost 64% of the sales in Q1FY24, car sales remained strong, buoyed by the multi-power train offerings of Tiago and Altroz. The recently launched Altroz iCNG, has received much acclaim and excellent response from customers," says Chandra.

The company expects the demand to remain robust in Q2 of FY24 with the onset of the festive season.