Tata Motors is considering raising prices in the last quarter due to escalating commodity expenses squeezing profit margins, according to Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles (TMPV). Chandra mentioned that input costs have surged by about 1.5% of revenue over the past year, and the industry has not been able to entirely pass this burden to consumers.
He affirmed that Sierra prices will remain steady, and customer deliveries will commence in January. Chandra stated that there might be a chance to implement a partial price adjustment in January, while the rest will need to be balanced through internal cost-saving measures.
The new Sierra is being produced at Tata Motors Sanand-2 facility, which was previously owned by Ford India and later acquired by Tata Motors.
Tata Motors presently commands a 16-17% market share in the SUV segment, and with the Sierra’s full-scale production, this figure is anticipated to rise to 20-25%. Chandra also forecasted a potential double-digit growth in November’s latter part, with a projected overall growth of around 5% for the entire year.
Furthermore, Tata Motors is set to introduce the Sierra EV in the upcoming fiscal year, expanding its range of electric SUVs.