New Delhi, February 8 Tata Motors Passenger Vehicles Ltd (TMPVL) will increase prices in the "coming weeks" due to rising commodity costs, according to its Managing Director & CEO, Shailesh Chandra.
While Maruti Suzuki India is reviewing the situation for a possible price increase, Hyundai Motor India has already implemented a price increase in January, mainly on the Venue model.
"Yes, we have been facing pressure on the commodity side for nearly a year now. We are still seeing pressure on the precious metal side, such as copper, and so on. Overall, if you look at the impact of the increase in commodity prices, it has been about 2 per cent of our revenues," Chandra said in a quarterly earnings call.
He was responding to a question about whether the company was planning to increase the prices of its vehicles due to rising commodity costs.
Reaffirming that the company will be increasing prices, Chandra said, "We will be able to announce this in the coming weeks."
However, he did not elaborate on the specific details of the potential price increases.
Last week, car market leader Maruti Suzuki India had said that it would review a price increase due to rising commodity costs, with Senior Executive Officer, Marketing & Sales, Partho Banerjee stating that the increase in the prices of precious metals has been "phenomenal."
While the company has been working to determine how much it can absorb the cost increase due to commodities, Banerjee had said, "Once we reach a certain point, if we are unable to accommodate the cost increase, we need to pass it on to our customers."
Similarly, Hyundai Motor India Ltd Head - Investor Relations, Hariharan KS, said that the company had already implemented a price increase in January, mainly on the Venue model.
"Going forward, we will be continuously monitoring this commodity trend, because we are in a period of high volatility in all these precious metals and commodities," he added.