Tata Motors is understood to be mulling a hike in the prices of its passenger cars, Indica and Indigo, by a “significant” amount with effect from October 1.
According to an internal communication circulated among top Tata Motors officials, the company plans to hike prices to minimise the impact of rising input costs, particularly tyres.
“Significant price increase in Indicas and Indigos from October 1,” the internal communication said.
When contacted, a Tata Motors spokesperson however declined to comment on the development.
Another auto giant, Hyundai Motors, hiked the prices of its vehicles from this month. Hyundai Motor India increased the prices of its products across models by up to 1.2 per cent from September 1.
The country’s largest car-maker, Maruti Suzuki, had also announced an increase in prices, driven by high commodity prices, in August.