Tata Motors has announced that it will increase prices of its commercial vehicle range starting April 1. An increase in price in the range of 2-2.5 percent will come into effect across the company’s range, depending upon individual model and variant.
The company said that increases in commodity prices such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has led to this announcement.
While the company said it has initiated actions to absorb 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 minimized price hike.
India’s CV sector has been under pressure due to hikes in fuels as well as the impact of the covid which affected logistics. However, increased expenditure on infrastructure projects has given some impetus to sales. For Tata, domestic CV sales rose 9 percent in February 2022 to 33,894 units as against 31,141 units in the year-earlier month.