Tata Motors is likely to increase vehicle prices next month as its model range will be compliant with stricter emission norms that will be in place from April 1. This comes days after Maruti Suzuki said it would increase the prices of its vehicles from January, citing inflation and regulatory requirements.
The price increase would offset the impact of commodity prices, according to Shailesh Chandra, the Managing Director of Passenger Vehicle and Electric Vehicles at Tata Motors. Chandra said in an interview with the news agency PTI that the impact of the commodity price 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 that batter prices have gone up but the same has not been passed on to the market. He said that they were evaluating a price increase based on the residual effect that is left as far as the commodity prices are concerned. Chandra said that new regulations and battery prices have also impacted the EV side. He said there is a cost involved in making the model range transition conform to new emission norms.
Chandra said that we are exploring potential price increase next month because of these factors for both ICE and EVs.
On April 1, 2023, vehicles will need an on-board self-diagnostic device to monitor real-time emission levels. If the emissions exceed the parameters, the device will indicate through warning lights that the vehicle should be submitted for service. There will be programmed fuel injectors that control the timing and amount of fuel injected into the petrol engine in order to control fuel burnt. Semiconductors will need upgrading.
Tata Motors includes vehicles like Punch, Harrier. Safari, Nexon, as well as Tiago EV and Nexon EV are some of the things that are connected to each other.