Tata Motors has announced plans to implement a price increase across its entire passenger vehicle range by 0.7% (on average) across its passenger vehicles portfolio, including its electric vehicle (EV) range. As per the company, the increase will be effective from February 1, 2024 and “is being taken to partially offset the rise in input costs.”
Tata Motors currently retails seven models – Altroz, Harrier, Nexon (and Nexon EV), Punch (and Puch EV), Safari, Tiago (and Tiago TV), Tigor (and Tigor EV, X-Pres T) with powertrains across petrol, diesel, CNG and electric.
This will be Tata Motors’ first price hike for its range of passenger vehicles in CY2024. In CY2023, the company had hiked its PV prices three times, effecting a cumulative increase of 2.4 percent. The hikes had come on February 1 (by 1.2% on the ICE portfolio), May 1 (by 0.6%) and on July 17 (by 0.6%).
In CY2022, the company had increased PV prices four times with the cumulative price hike working out to 3.45% – 0.9% on January 18, 1.1% on April 23, 0.55% on July 9 and 0.9% on November 7, 2022.
Records best-ever annual sales in CY2023, headed for best-ever fiscal in FY2024
Tata Motors registered its best-ever annual wholesales performance in CY2023: 550,838 units, up 4.56% over CY2022’s 526,798 units. This marked the second consecutive year that the car and SUV manufacturer surpassed the half-a-million passenger vehicle sales milestone.
The company has capitalised on surging demand for its SUVs, particularly the Nexon and the Punch compact SUVs which are its top two highest-selling models. What also helps the company is that Tata Motors’ PV portfolio covers petrol, diesel, CNG and electric powerplants, thereby expanding its consumer and market reach.
What has also helped Tata Motors’ accelerated growth is its first-mover advantage in the fast-growing electric vehicle market, where it has an over 70% market share. The company currently retails the Nexon EV, Tigor EV, Tiago EV, Punch EV and the Xpres-T (for fleet buyers). In CY2023, Tata Motors sold a record 69,153 EVs, up by a strong 59.15% YoY (CY2022: 43,451 EVs). This also means an increase in the company’s EV penetration levels – to 12.55% from 8.24% in CY2022.
With nine months of FY2024 over, Tata Motors is also well on track to achieve sales of over 500,000 units in the ongoing fiscal year. In the April-December 2023 period, it has recorded cumulative wholesales of 424,350 units, up 4% (April-December 2022: 408,087 units) including 53,193 EVs, up 56% YoY (April-December 2022: 34,083 EVs). In FY2023, the carmaker had sold a record 544,391 units.
Tata Motors had previously targeted EV sales of 100,000 units in FY2024. However, this big number may not be achievable albeit, with three months to go for the current fiscal to end, the carmaker is en route to clock cumulative sales of around 75,000 units. At present it is averaging monthly EV sales of 5,910 units.
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