Tata Motors, the country's largest auto maker, has decided to increase the prices of its models, despite witnessing a continuous fall in its sales. Despite the auto maker has seen a constant fall in recent months, it is looking forward for a price hike in the coming festive season. Speaking on the same, Senior Vice President for Passenger Vehicles at Tata Motors, Ankush Arora was quoted as saying, “We are not ruling out the possibility of price hike across the models before the forthcoming festive season.”
However, he did not mentioned the elasticity of the proposed hike. A point to note here is that Tata Motors reported a fall of 9 per cent in June 2013 to 1,39,632 units over 1,53,450 units recorded in the same period last year. During the same period, the sales of country's largest auto maker, Maruti Suzuki declined 8.17 per cent, whereas Hyundai India witnessed a marginal spike. Tata Motors recorded a significant fall of 29.17 per cent, amounting to 9,628 units in June as against 13,595 units sold in the corresponding period of last year.
It must be noted that since April, the country's largest auto maker, has not come up with sales growth in any month, while the average fall stands at around 35 per cent. In a move to revive its sales, Tata Motors recently declared some advertisements, under which it offered several freebies and goodies to lure Indian buyers. The offers by Tata Motors included an exchange scheme for Nano customers. Along with, the auto maker was also offering cash back offer of up to Rs. 30,000 on Safari Storme and Rs. 15,000 exchange bonus on Sumo.