Why Did Tata Motors Announce A Price Hike Of All Its Vehicles?

Let’s think of a simple situation. Rather, let’s call it a truth of life. Everything seems to be going well when a transaction, particularly that which requires us to pay a certain sum of money stays as it is or unmoved. Consider it well within our ambit of control. But the moment there comes about a spike, everyone loses their composure. Doesn’t that say a thing or two about certainty or the lack of it in life and the impact that it has on us?

You are absolutely fine when the jacket you so adored the other day in your favourite shopping arcade still costs the same even after a few months. Reason being that it still remains within your reach. But can the same be said about things like automobiles.

Easier to change jackets or shirts and even one’s kitchen set. But variations, slight that they may be, in the sphere of automobiles unsettle us greatly. Truth or not?

So when recently, the revered Tata Motors- among the country’s most trusted and widely used carmakers announced that it is to increase the price of all cars under its make, there were more than a few perturbed looks and glares.

What really happened? Why would Tata Motors do such a thing? Surely, it goes beyond the realm of normal or everyday speculation that 2020 was, after all, such a torrid year for everyone among us, whether or not, one was attached to the automotive eco-system.

Therefore, the first and most obvious point of contention behind Tata Motors deciding to- even it it is all of a sudden- increasing the price of its cars was this:

Could the rise in car prices have something to do with a lack of sale or profitability in 2020?

To that, the following is essential to note, especially since it is easy to conjecture and but also vital to follow facts:

Tata Motors has announced the increase in prices of its models across the domestic range with immediate effect in the passenger vehicle segment. The homegrown auto major cites a number of reasons for the decision to hike the prices including the rising input costs and material costs of steel, precious metals and semiconductors, etc.

The company says the rising inputs costs have “compelled” it to pass on a part of the cost to the customers. Tata sells a range of passenger cars across different segments and the Tiago compact hatchback sits at the bottom of the price point as the brand’s most affordable model and moving up, the Tigor compact sedan, Nexon compact SUV, Altroz premium hatchback and Harrier mid-size SUV exist.

The above information was furnished in a brand new article on popular auto gazette Gaadiwaadi.com.

Now what’s also important to note is that the fact that Tata Motors have taken the decision that they have isn’t all; the point is that price of increase of cars made under the dependable Tata marquee is INR 26,000.

Also Read: Tata Nexon – the Number 1 electric car in India

Now, in here there rests a catch: those customers who have already booked their Tata Motors make before January 21, 2021, will not have to shell out an extra penny. The price-rise, therefore, doesn’t apply to them!