Domestic carmaker Tata Motors is looking to raise the prices of its passenger vehicles from next month to make its cars compliant with stricter emissions standards that will come into effect from January 1. April next year. Shailesh Chandra, Managing Director of Tata Motors – Passenger and Electric Vehicles, told PTI that the price adjustment is intended to offset the impact of commodity prices which remained high for most of the year.
He added that due to the change in regulation, there will be an impact on costs. “Even the real impact of the commodity price drop will only come from next quarter and we still have the residual impact of the commodity escalation we’ve seen during the year,” Chandra said. Another reason he gave is that the price of the battery has also gone up, but it hasn’t hit the market yet.
Also Read: Tata Motors Chasing EV Sales Record
Chandra noted that the company is assessing the price increase based on some residual impact on commodity prices. “Battery prices and new regulations have also impacted the electric vehicle segment,” said Chandra. Furthermore, there is a cost involved in making the transition of the model range to match the new emissions norms, he added.
The automaker’s model range includes models such as punch, Nexon, Eagle, and Safari in the domestic market. It leads the electric vehicle segment with products like the Tiago EV and Nexon EV.
Speaking of regulatory standards, from April 1, 2023, vehicles will need to have in-vehicle self-diagnostics to monitor real-time driving emissions. The device will continuously monitor key components to meet emissions standards such as the catalytic converter and oxygen sensor, to closely monitor emissions.
First published date: December 5, 2022, 18:11 PM IST
