With prices of raw materials increasing, OEMs are also making announcements about increasing the prices of their offerings. This time around, it is India’s largest commercial vehicle manufacturer – Tata Motors, which has announced the impending price hike of its commercial vehicle range. The manufacturer is planning to hike the prices of its model line-up by roughly 2.5 per cent. The increment in cost will come into effect from January 1, 2022. The price increment will be effective across segments – M&HCV, I&LCV, SCV and Bus, basis on individual models and variants of the vehicle.
As per the automaker, the increase in the costs of commodities, like aluminium, steel, semiconductors, and other important metals, along with the hiked up prices of other raw materials have forced the automaker to incite this increment in price. Tata Motors added, “While the company 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”.
Also, other automotive giants have announced the price hikes that will come into effect from Jan 1, 2022. Meanwhile, Tata Motors earlier revealed that its sales have also increased by roughly 25 per cent. The total sales of Tata Motors stood at 62,192 units in November when compared to the corresponding month of last year. The company could only dispatch 49,650 units in November last year.
Talking of the brand’s commercial vehicle sales, it retailed 32,245 units in the Indian market, which is a growth of 15 per cent on a year over year basis, as the company could only sell 27,982 units last year in the month of November.