Shares of Tata Motors rose more than 1% as the company announced a third price hike in 2024
Shares of Tata Motors rose over 1 percent to Rs 810 in early trade on December 10, 2024, following the company’s announcement of a 3 percent hike in prices across its range of vehicles, including electric models.
The increase, which will take effect in January 2025, is the company’s third price increase this year, driven by rising global commodity prices, high import duties on raw materials, and supply chain disruptions.
The impact of price increases on popular models
Among the most affected models are Tata’s popular Nexon and Punch. Basic types of The Nexon again Punchcurrently priced at Rs 8.00 lakh and Rs 6.13 lakh (ex-showroom), respectively, their prices are expected to increase to Rs 8.24 lakh and Rs 6.31 lakh following the hike.
This price hike comes amid a slowdown in demand in the auto industry, which has prompted automakers to offer steep discounts and moderate sales.
Tata Motors recent performance and industry trends
Despite the price hike announcement, Tata Motors has faced challenges in recent months. Over the past three months, the stock has been one of the worst performers among all major four-wheeler manufacturers, losing more than 22 percent. In comparison, the wider auto industry has also been dealing with rising input costs and weak demand following a period of strong growth.
The price hike is not just for Tata Motors. Maruti Suzuki, the country’s largest carmaker, has also announced a 4 percent price hike from January 2025 to combat rising input costs. Hyundai Motor India is following this trend with price hikes across all models, including the Venue, Creta, and Ioniq 5 EV, with plans to launch the Creta EV next year.
Luxury carmakers, including Audi, BMW, Mini, and Mercedes-Benz, are also expected to start raising prices in the new year, reflecting a broader trend across the global auto industry to pass on rising production and transportation costs to consumers.
Shares of Tata Motors were trading at Rs 807, marking a rise of 1.13 percent as of 10:00 am, reflecting positive reaction to the price hike despite continued industrial pressure.
