Tata Motors, the country’s largest commercial automaker, said Tuesday that the prices of its commercial vehicles will increase by as much as 2 percent from October 1, 2021 for the model and variant of the vehicle, “a file said.
The automaker blames the rise in raw material and raw material prices for its decision to raise prices. “The sustained rise in the price of raw materials such as steel and precious metals makes it necessary for the company to pass some of this on by increasing the price of its products. The company has continued to try to minimize the price increase by assuming a certain proportion of the costs at various stages of manufacture, ”said Tata Motors.
This is the automaker’s second price hike in less than 2 months. At the beginning of August, the company had raised the prices for its cars by an average of 0.8 percent, with the exception of the “New Forever” series. This step was also attributed to the increase in input prices.
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Shailesh Chandra, President of the Passenger Vehicles Business Unit, Tata Motors told PTI news agency that it saw “a very sharp rise in steel and precious metal prices” over the past year. Chandra added that the financial impact of the rise in commodity prices is in the range of 8 to 8.5 percent of her revenue last year.
Tata isn’t the only automaker facing high capital expenditures. Maruti Suzuki, the country’s largest automaker, raised prices for its Swift hatchback and CNG variants of other models by as much as 15,000 rupees in July to mitigate rising acquisition costs. Honda did the same in August when it announced a price hike for its entire range of models in India to offset the impact of rising raw material prices.
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