Tata's Commercial Vehicles to Become More Expensive: Here's Why
In a recent turn of events, Tata Motors has stated that it will be raising the prices of its commercial vehicles. This follows closely on the heels of Maruti Suzuki's price hike across its lineup of vehicles.
The hike in prices, which is due to be effective shortly, will be applicable across Tata's entire line of commercial vehicles such as trucks, buses, and other heavy-duty vehicles. Although the company has not indicated the specific quantum of the price rise, industry sources indicate that it could be between 2-5% based on the particular model and variant.
So, why the price increase? The reason for this price increase, according to Tata Motors, is due to increased input costs, such as the price of raw materials, fuel, and labor. The company has also blamed the effects of inflation and other economic conditions on its cost of production.
This increase in price is expected to make a substantial difference in India's commercial vehicle market, which is already under the strain of the COVID-19 pandemic and other economic pressures. Most of the transporters and fleet operators, who are already finding it hard to keep their heads above water, will find it hard to absorb the higher costs.
Though, it should be mentioned here that Tata Motors is not the only one to raise prices. Other automakers like Maruti Suzuki have also raised prices in recent years. This implies that the price increase is not due to any particular problem with Tata Motors, but rather due to larger economic trends.
While the Indian economy struggles through these tough times, it will be fascinating to observe how the market for commercial vehicles reacts to this price increase. One thing is for sure, however: transporters and fleet operators will have to be ready to bear the extra costs, or look for ways of recouping them through added efficiency or otherwise.