Tata Motors follows Maruti Suzuki. Declares price increase from THIS date | Stock Market News
Source: Live Mint
Indian automakers have been announcing price hikes across their range of products to pass on the rise in input costs to consumers, with the latest hike announcement coming from Tata Motors. The country’s largest commercial vehicle manufacturer informed investors through an exchange filing today, about a price increase of up to 2% across its commercial vehicle range, effective April 1, 2025.
The company stated that the price increase is intended to offset rising input costs and will vary based on the individual model and variant.
Maruti Suzuki announces up to 4% price hike
Earlier today, Maruti Suzuki, India’s largest passenger car manufacturer, also announced an increase in vehicle prices starting in April 2025.
“In light of rising input costs and operational expenses, the company has planned to increase the prices of its cars from April 2025. The price increase is expected to be up to 4% and will vary depending on the model. While the company continuously strives to optimize costs and minimize the impact on its customers, some portion of the increased cost may need to be passed on to the market,” the company said in today’s exchange filing.
According to market experts, price hikes may also be announced by other automakers amid the escalating global trade war, which could potentially drive up the cost of everything from making cars to building infrastructure.
The major developed economies are currently engaged in a tit-for-tat trade battle, driving prices higher, forcing consumers to spend less, and prompting manufacturers to pass on the increased raw material costs to consumers.
Meanwhile, Indian passenger vehicle (PV) sales have been moving at a slow pace in recent months, impacted by weak urban consumer demand, which accounts for the majority of PV sales. Rising inflation and falling wages have forced many consumers to postpone their vehicle purchases.
According to the recent estimates, the industry is set to post a moderate growth rate of 5% in FY25, and automakers estimate a similar growth for the next fiscal year, indicating weak demand for passenger vehicles.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
