Tata Motors on Monday said it has increased prices of its passenger vehicles by 0.8 per cent with effect from August 3. The Mumbai-based auto major, which sells models like Nexon and Harrier, will increase prices of its passenger vehicles on an average of 0.8 per cent depending on the variant and model, Tata Motors said in a statement.

The company noted that it would offer protection from the price increase to vehicles that will be retailed on or before August 31. For the well-being of its business and supporting ecosystem, the company had recently announced that it has set in motion a comprehensive 'Business Agility Plan' to protect and serve the interests of its customers, dealers, and suppliers.

Last week, the automaker had noted that it is looking to increase the prices of its entire range of passenger vehicles to offset the steep rise in procurement cost of essential materials like steel and precious metals. Tata Motors President Passenger Vehicles Business Unit (PVBU) Shailesh Chandra had said that the company has seen a very steep increase in the prices of steel and precious metals over the last year. The financial impact of the increase in commodity prices is in the range of 8-8.5 per cent on the company's revenues in the past year, he had stated. He noted that the company has been able to pass on only a small part of the increase in input costs to the customers so far.

Prices of precious metals like rhodium and palladium have gone up significantly over the last one year. Steel prices have also remained high during the period. Last month, the country's largest carmaker Maruti Suzuki India had hiked prices of hatchback Swift and CNG variants of other models by up to Rs 15,000 to counter an increase in input costs.

Similarly, Honda has also announced increasing prices of its entire model range in India from this month to offset the impact increase in commodity prices.