With new emission norms coming into force from April, Tata Motors will join the league of auto manufactures who have hiked prices to offset additional costs of modification of their vehicles. The company is also keen to sell some stake in its financing arm, Tata Motors Finance.
Tata Motors, the country?s largest commercial vehicle maker and third largest passenger vehicle manufacturer, on Tuesday said it would increase prices of its commercial vehicles by up to 2% on account of the new emission norms that will be implemented from April. However, the company refused to give the quantum of hike on passenger vehicles.
?The prices can go up by 1-2% of the total vehicle cost. New emissions norms require new technologies and therefore prices will have to go up,? Ravi Pisharody, president (commercial vehicles), said. ?There will be an increase in prices of passenger vehicles also; but I cannot comment further right now,? PM Telang, managing director (India operations), Tata Motors, said.
On sale of Tata Motors Finance stake, Ravi Kant, vice-chairman, Tata Motors, said, ?We are looking at various options of offloading stake.? While there has been no formal announcement, it is learnt that State Bank of India might pick up 49% stake in Tata Motors Finance. Of late, Tata Motors has been divesting holdings in group firms to raise funds.