Tata Motors, India’s largest commercial vehicle manufacturer, has announced a price hike of its commercial vehicle range. An increase in price in the range of 2.5%, will be implemented from January 1, 2022 and will be put into effect across segments M&HCV, I&LCV, SCV and Bus, basis individual model and variant of the vehicle, the company said on Monday.
The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials has incited this price hike commercial vehicles, the company said. While the company said it is absorbing a significant portion of the increased costs at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimal price hike.
On Monday, Tata Motors shares were down 2.53% to close at Rs 467.95 apiece on NSE. Earlier this month, Maruti Suzuki has also announced that it will increase prices in January 2022 due to increase in various input costs. The company said that the price hike shall vary for different models.
Honda and Renault are also looking to increase vehicle prices from January next year to offset the impact of rising input costs. On the other hand, Audi said its price increase effective January 1 will be up to 3% across its entire model range owing to rising input and operational costs.
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“Prices of commodities, raw material and other input costs continue to rise. An appropriate price hike to at least partially offset this increase in costs seems inevitable in the near to short term,” Tata Motors President Passenger Vehicles Business Shailesh Chandra had said earlier.
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Tata Motors’ total sales increased by 25% in November as compared to the same month last year. The automaker posted a 21% increase in its domestic wholesales at 58,073 as compared with 47,859 units in the year-ago period.
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