Tata Motors is likely to implement a price hike in the fourth quarter as rising commodity costs continue to pressure margins, Shailesh Chandra, MD & CEO of Tata Motors Passenger Vehicles (TMPV), told Business Today. He said input costs have increased by nearly 1.5% of revenue over the past year, and the industry has not been able to fully pass this on to consumers.
Chandra said the company will keep Sierra prices stable, with customer deliveries beginning in January. “The first opportunity to take a partial adjustment may come in January, and the remainder will have to be managed through internal cost reductions,” he said.
The new Sierra is being manufactured at Tata Motors Sanand-2 plant, formerly the Ford India factory acquired by the company.
Chandra said Tata Motors currently holds 16–17% share in the SUV segment, and the Sierra is expected to lift this to 20–25% once fully ramped up. He also noted that November could see double-digit growth in the second half, with full-year growth likely around 5%.
Tata Motors will also launch the Sierra EV in the next financial year, further expanding its electric SUV portfolio.
