NEW DELHI: Tata Motors on Monday announced price increases across its commercial vehicle range —medium and heavy commercial vehicles, intermediate and light commercial vehicles, small commercial vehicles as well as buses — effective January 1, 2021.
The steady rise in material and other input costs, impact of forex and transition to BS-VI norms, have cumulatively increased the cost of manufacturing vehicles, necessitating a price revision to partially offset the impact, the company said.
“There will be a price increase across Tata Motors commercial vehicle range, effective January 01, 2021,” the company said in a statement.
The actual change in price will depend on individual model, variant and fuel type. Tata Motors had thus far been absorbing the addition in costs. However, the move comes at a time when early every automaker has announced a price hike to offset the input costs.
Fitch Ratings had said on Thursday that automakers’ plans to pass on higher commodity prices will dim the prospects for a demand recovery after December when the boost in some categories from pent-up demand and festive spending fades.
Tata Motors’ total commercial vehicle sales (including exports) declined 9 per cent to 27,982 units in November 2020 as against 30,588 units sold last year in November.