Indian auto major, Tata Motors has announced one percent price hike across its passenger vehicle range, effective from January 2014. In november, the company sold 37,192 units, registering a decline of 39 percent in the sales graph compared to last year.
Commenting on the price hike Tata Motors' spokesperson said, "While there is to be about 1 per cent hike in our passenger vehicles pricing, the commercial vehicles business continues to review the situation and will take a call subsequently".
Depreciating value of Rupee, Increasing input costs and above all, major decline in demand could be the reasons behind this price hike. The price hike is applicable on all the models, ranging from INR 1.5 Lakh Nano to top of the line Aria.
Not only Tata, almost every auto manufacturer including Maruti Suzuki, Hyundai, Honda and even luxury carmakers like BMW and Audi have announced price hikes across their range.