Tata Motors' passenger cars could get costlier from next month
Home-grown automaker Tata Motors is looking to increase the prices of its passenger vehicles from next month so as to make its range of cars compliant with the stricter emission norms which are set to come into effect from April 1 next year. The revision in prices is meant to offset the impact of commodity prices, which have remained high for the most part of the year, Shailesh Chandra, Tata Motors Managing Director - Passenger Vehicle and Electric Vehicles, told PTI.
He added that due to the regulatory change, there will be an impact on the cost. "Even the real impact of softening of commodity prices is only going to come from next quarter and we still have the residual impact of the commodity escalation that we have seen during the year," Chandra said. Another reason that he cited is that the battery prices have also gone up but it hasn't yet been passed on to the market.
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Chandra noted that the company is evaluating a price increase based on some of the residual effect that is left as far as the commodity prices are concerned. "Battery prices and new regulations have also impacted the EV side," Chandra said. Further, there is a cost involved in making the model range transition to conform to new emission norms, he added.
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Speaking of the regulatory norm, from April 1, 2023, vehicles will need to have an on-board self-diagnostic device to monitor the real-time driving emission levels. The device will constantly monitor key parts for meeting emission standards such as the catalytic converter and oxygen sensors, to keep a close watch on emissions.