Tata Motors to raise prices from January 2017

Tata Motors today announced that prices of its passenger vehicles would go up in the range of Rs 5,000 to Rs 25,000, depending on the model, from January 2017.

The company cited the increase in prices of raw materials such as steel, aluminium, copper and rubber as a reason for the price hike.

The announcement by Tata Motors follows a similar decision by Toyota, which is set to increase the prices of all its models from January 2017 by up to 3 percent. Moreover, Renault cars could also get more expensive starting next month, as the French carmaker is also planning to hike prices by up to 3 per cent due to rising input costs, according to reports.

In the next few days, other carmakers are likely to follow suit and announce an upward revision in prices of their vehicles from next month. The hike in prices at the start of the year is a regular phenomenon among automakers in an effort to offset the dip in sales witnessed usually in December.

Tata Motors' passenger vehicles recorded sales of 12,736 units in the domestic market in November 2016, with a growth of 22 percent compared to 10,470 units sold in the same period last year. The passenger car sales continued its upward momentum with a growth of 26 percent due to the strong demand for the Tata Tiago.