Tata Motors announces 3% price hike for commercial vehicles
India's largest commercial vehicle manufacturer, Tata Motors Ltd, has revealed plans to increase the prices of its commercial vehicles in the country. The prices will increase by up to 3% starting October 1, 2023. The move aims to offset the residual impact of past input costs and is expected to boost the company's revenue in the upcoming quarter, provided sales growth continues.
Rising commodity prices challenge the auto industry
The auto industry faced significant challenges due to rising commodity prices throughout most of 2022 and earlier this year. This led to increased pressure on margins, forcing companies like Tata Motors to pass on the cost to customers gradually. Although commodity prices have softened recently, the residual impact of past input costs has prompted Tata Motors to raise its commercial vehicle prices.
August 2023 sales show modest growth
In August 2023, Tata Motors reported a modest 1.9% YoY growth, with total sales reaching 32,077 units compared to 31,492 units in August last year. The most significant growth came from passenger carriers, registering a 30% YoY increase. Heavy Commercial Vehicles (HCV) sales, which primarily include trucks, rose by 14.4% YoY. Domestic sales of medium/heavy internal combustion vehicles (M&HICV) in August this year stood at 13,306 units, up from 12,069 units in August 2022.
