After Hero MotoCorp and Mahindra, auto major Tata Motors on Monday announced increase in commercial vehicle prices from January 2021, citing rise in material and other input costs. The Tata group company, in an exchange filing, said that there will be a price increase across its commercial vehicle range, effective January 01, 2021. Without specifying the range of the price hike, Tata Motors said that actual change in price will depend on individual model, variant and fuel type.
The auto major said the steady rise in material and other input costs, impact of forex, and transition to BS6 norms have cumulatively escalated the cost of manufacturing vehicles.
"The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions," it said in a filing to the BSE.
The price increase is expected across the portfolio of medium and heavy commercial vehicles (M&HCV), light commercial vehicles (LCV), small commercial vehicles (SCV) and buses, the company said.
Tata Motors said it will continue to offer best in class value in each segment with low total cost of ownership and increasing profit potential for vehicle owners.
Tata Motors is a $35 billion global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses. It has operations in India, the UK, South Korea, Thailand, South Africa and Indonesia through a strong global network of 103 subsidiaries, 10 associate companies, 3 joint ventures and 2 joint operations as on March 31, 2020.
Last week, Mahindra & Mahindra (M&M) announced that it will increase prices of its passenger and commercial vehicles from January 1, 2021. The decision to hike prices has been taken due to rise in commodity prices and various other input costs.
A day after Mahindra's price hike announcement, Hero MotoCorp also declared its plan to increase prices of its products by up to Rs 1,500, with effect from January 1, 2021.
By Chitranjan Kumar