Tata Motors to increase prices of commercial vehicles from January next year
Tata Motors on Monday announced that it will increase prices of its commercial vehicles up to 2.5 per cent effective from January next year. The decision has been taken to offset the increase in price of essential commodities and raw materials costs such as steel, aluminum, copper and plastic.
The price hike will be implemented across segments of medium and heavy commercial vehicles, intermediate and light commercial vehicles, small commercial vehicles and buses. The increment will depend on the individual model and variant of the vehicle.
The company said that it is absorbing a significant portion of the increased costs at various levels of manufacturing, however, the steep rise in overall input costs has made it imperative for them to pass on some residual proportion by hiking prices of commercial vehicles.
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The carmaker is also mulling hiking prices of its passenger vehicles due to the rise in commodity cost. The company's President - Passenger Vehicles Business, Shailesh Chandra, recently told PTI, "An appropriate price hike to at least partially offset this increase in costs seems inevitable in the near to short term." Tata Motors sells model such as Punch, Nexon and Harrier in the domestic market.
Honda Cars India and Renault are also looking at hiking prices of their offerings in the domestic car market from January next year given the continuing rise in input costs. While Honda is still studying how much of the input cost can be absorbed, Renault noted that it is looking at a "substantial" price increase across its model range that includes Kwid, Triber and Kiger.
Already carmakers such as Maruti Suzuki, Audi and Mercedes-Benz have announced a hike in prices from January next year, citing the rise in input and feature enhancement costs. Maruti Suzuki informed that the price hike will vary for different models while Mercedes-Benz said its hike will be on select models by up to 2 per cent. Audi will increase price up to 3 per cent across its entire model range.
(with inputs from PTI)