Why is Tata Motors planning to raise prices of its commercial vehicles?
Answer
Answer
Most of the four wheelers and two wheeler companies have been in the midst of hiking the prices of their products and Tata Motors has already done it for its passenger cars. Now Tata Motors will be increasing the prices of its commercial vehicle range by 2% on an average across the range of models from October 01. The idea is to partially offset the impact of higher input costs, that has plagued the auto sector in the last few months.
A consistent rise in the price of a host of commodities like steel and copper have hit auto input prices badly. Tata Motors’ CV portfolio includes trucks, buses and LCVs and due to the slow pick-up in the CV space, the company will be footing part of the spike in input costs. Commodity prices are beyond the control of auto companies and they have spiked on supply chain constraints and robust China demand. Maruti hiked prices thrice in 2021.