Tata Motors is considering further price hikes as rising raw material costs put pressure on margins. Reuters reports.
Raw material inflation is expected to weigh on margins in the passenger vehicle business by the equivalent of 3 percent of revenue during July-September, after 4 percent in the previous quarter.
At the same time, higher fuel prices following the Iran war are driving demand for electric vehicles.
Tata has doubled electric vehicle production capacity to more than 16,000 vehicles per month.
Electric vehicles now account for 21 percent of the company’s car sales in India, compared with 14 percent last year.
