(Reuters) – Indian carmaker Tata Motors said on Monday it will hike prices of its cars, including electric vehicles, by up to 3% from January, joining a slew of automakers that raised prices to battle rising costs.
WHY IT’S IMPORTANT
Indian automakers are grappling with rising costs due to strong global commodity prices, high import duties on raw materials, and supply chain disruptions.
Tata Motors, known for its ‘Nexon’ and ‘Punch’ small SUVs, has already hiked car prices twice this year.
KEY CONTEXT
Indian carmakers have also struggled with slowing sales as demand for new vehicles has cooled after rising for successive years, forcing carmakers to offer higher discounts and moderate sales to dealers.
Last week, India’s top carmaker Maruti Suzuki, JSW MG Motor and Hyundai Motor India announced price hikes, also effective January.
BY THE NUMBERS
Carmaker Quantum of Price Hike
Tata Motors 3%
Maruti Suzuki 4%
JSW MG Motor 3%
Hyundai Motor India up to 25,000 rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Eileen Soreng)
