New year new prices

Tata Motors has announced an impending price hike of its CV range. An increase in price in the range of 2.5 per cent will come into effect from January 01, 2022 for the entire range basis individual model and variant of the vehicles. The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials is known to drive the upwards revision. The company is claimed to absorb a significant quantum of the hike by introducing costs at various levels of manufacturing. The steep rise in overall input costs makes it imperative to pass on some residual proportion through a minimal price hike. Among other OEMs to follow suite are Ashok Leyland that will increase prices to the tune of two per cent. VE Commercial Vehicles is also looking at a markup to pass on part of the raw material cost increase on its customers. Shamsher Dewan, Vice President, ICRA said,

“The hikes are due to pressure on the raw material side, but on the other hand demand has also improved. Particularly for heavy trucks aided by demand from infrastructure spending, e-commerce and retail.”