CV manufacturers hike prices

Commercial vehicle manufacturers weighed down by rising operational costs, commodity price hikes among other macroeconomic factors are finding it hard to absorb costs at the cost of their eroding margins. Recently CV major, Tata Motors announced a price hike effective October 01, 2021 across its fleet by up to two per cent depending on the model and variant of choice. The official statement by the company read, “The continued rise in the cost of commodities, such as steel and precious metals, necessitates the company to pass on a part of it through increase in price of the products. The company has further strived to minimise this increase by absorbing a certain portion of the cost at various levels of manufacturing.” This is in addition to the continued efforts to deliver low total cost of ownership for its customers and fleet owners. Ashok Leyland, for instance, has partially negated commodity price hikes, particularly steel through price hikes and internal cost reduction initiatives. Volvo Eicher Commercial Vehicles, similarly is known to have hiked the prices by a margin of two to three per cent.