Tata Motors said that it will hike the prices of its commercial vehicles by up to 3 per cent with effect from October 1. The price hike will applicable across the entire range of commercial vehicles and has been hiked to offset the impact of past input costs, according to a company statement.
“Tata Motors, India’s largest commercial vehicle manufacturer, has announced that it will increase prices of its vehicles, effective 1 October 2023, up to 3 per cent. The price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles,” the exchange filing read.
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This is the third time that the automaker has hiked prices in this calendar year to offset the impact of past input costs. The company had previously hiked rates by 1.2 percent in January and by 5 percent in March to ensure that its vehicles comply with the new BS-6 (Bharat Stage-6) emission norms.
The government implemented strict norms through the second phase of BS-6 from April 1. These rules included testing real-time driving emissions, leading to increased costs for automakers. Moreover, ratings agency Fitch said in a report India’s commercial vehicle sales volume will slow down to low-to-mid-single digits due to rising ownership costs.
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The report further mentioned that the implementation of the latest emission norms could lead to around 5 percent rise in the prices of commercial vehicles. Tata Motors has logged the highest number of commercial vehicle sales in August this year, according to the data from industry body Federation of Automobile Dealers Association (FADA).
The automaker sold a total of 27,483 units in August this year versus 29,107 units sold in the same period last year. Tata Motors has a market share of 36.50 percent in the commercial vehicles segment. Overall, the sale of tractors and commercial vehicles saw a rise in August this year. While sales of tractors went up by 14 percent in August 2023, sale of commercial vehicles rose by 3 per cent.
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Total 75,294 units of commercial vehicles were sold in the month of August, compared to 72,940 units sold in the same period last year. Tata Motors shares rose 1.02 percent to trade at 640.60 apiece after market close on September 18.
