Tata Motors considering price increase for passenger vehicles from January

Shailesh Chandra, managing director of Tata Motors’ passenger vehicle and electric vehicle division, claimed that even battery prices have increased but have not been passed on to consumers.


According to a top corporate official, Tata Motors is considering raising the price of passenger vehicles starting next month in order to make its model range comply with tighter pollution standards that go into effect on April 1 of next year.

Shailesh Chandra, managing director of Tata Motors’ passenger vehicle and electric vehicle divisions, told PTI that the pricing adjustment would help lessen the impact of commodity costs, which have been high for the majority of the year.

“The regulatory change will have its impact on the cost. Even the real impact of softening of commodity prices is only going to come from next quarter and we still have the residual impact of the commodity escalation that we have seen during the year,” Chandra said.

He pointed out that although battery prices have increased as well, the increase has not been reflected in market prices.

“So we are evaluating a price increase basis some of the residual effect that is left as far as the commodity prices are concerned. Battery prices and new regulations have also impacted the EV side,” Chandra said.

Additionally, he added, there is a cost associated with transitioning the model range to comply with new emission regulations.

“We are exploring potential price increase next month because of these factors for both ICE and EVs,” Chandra said.

In the domestic market, Tata Motors offers a variety of models including the Punch, Nexon, Harrier, and Safari. With vehicles like Tiago EV and Nexon EV, it dominates the electric vehicle market.

Vehicles must have an on-board self-diagnostic system starting on April 1, 2023, in order to track the driving emission levels in real time. In order to maintain a careful eye on emissions, the gadget will continuously check important components for compliance with emission requirements, such as the catalytic converter and oxygen sensors.

When the emissions go beyond the limits, the system will signal through warning lights that the vehicle needs to be serviced.

The vehicles will also include programmable fuel injectors, which would regulate the timing and amount of fuel pumped into the gasoline engine, in order to further reduce the amount of fuel burned.

To monitor the throttle, crankshaft positions, air intake pressure, engine temperature, and the components of the exhaust emissions (particulate matter, nitrogen oxide, CO2, sulphur, etc.), even the semiconductors utilised by the car will need to be modified.

Maruti Suzuki also announced last week that starting in January, vehicle prices would rise.