CHENNAI: After cars and SUVs, now trucks and buses will cost 2-2.5% more from January as manufacturers cite a sharp rise in raw material costs, particularly steel.
Tata Motors has announced that it will hike prices “in the range of 2.5% from January 1, 2022” across its various segments from medium & heavy commercial vehicles (CVs), intermediate & light CVs, to small CVs and buses. “The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has incited this price hike for commercial vehicles,” the company said. It earlier hiked CV prices by 2% in October.
Ashok Leyland has also decided to go in for a price hike across its range in January with the markup fixed at around 2%. Like Tata Motors, Leyland too had increased prices earlier this year – 2% each in March and July. Others like Volvo Eicher Commercial Vehicles (VECV) are also looking at a markup to pass on part of the raw material cost increase. VECV MD & CEO Vinod Aggarwal said, “We are also thinking about a price hike as it has now become imperative. Steel prices have doubled in the last one year and other components like tyres have also seen a sharp increase in prices. There is no alternative to a price increase.”
ICRA’s VP Shamsher Dewan said, “The hikes are due to pressure on the raw material side, but demand has also improved. Particularly for heavy trucks aided by demand from infrastructure spending, e-commerce and retail.”
Tata Motors has announced that it will hike prices “in the range of 2.5% from January 1, 2022” across its various segments from medium & heavy commercial vehicles (CVs), intermediate & light CVs, to small CVs and buses. “The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has incited this price hike for commercial vehicles,” the company said. It earlier hiked CV prices by 2% in October.
Ashok Leyland has also decided to go in for a price hike across its range in January with the markup fixed at around 2%. Like Tata Motors, Leyland too had increased prices earlier this year – 2% each in March and July. Others like Volvo Eicher Commercial Vehicles (VECV) are also looking at a markup to pass on part of the raw material cost increase. VECV MD & CEO Vinod Aggarwal said, “We are also thinking about a price hike as it has now become imperative. Steel prices have doubled in the last one year and other components like tyres have also seen a sharp increase in prices. There is no alternative to a price increase.”
ICRA’s VP Shamsher Dewan said, “The hikes are due to pressure on the raw material side, but demand has also improved. Particularly for heavy trucks aided by demand from infrastructure spending, e-commerce and retail.”
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