India automobile major Tata Motors is considering raising the prices across its passenger vehicle portfolio in India. The price hike is being contemplated by the carmaker in order to offset the depreciation of the Indian rupee which has resulted in higher import costs for production.
The automaker saw a decline of 27 percent in its sales during the months January – March 2013, which is much steeper than the industry decline rate of 7 percent, according to the data provided by the Society of Indian Automobile Manufacturers.
Certain components used while production, are sourced from foreign markets, costs of which has increased significantly, thus affect the overall cost of production for the automaker.
If the carmaker implements the price hike, it will join the ranks of other automakers in India such as General Motors India and Mahindra & Mahindra who have increased prices due to the same reasons.