New Delhi: Tata Motors announced on September 18 that it will increase the prices of its commercial vehicles, effective October 1, 2023, by up to 3 percent. This will lead to higher revenue for the company from the next quarter, assuming sales growth continues.
“The price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles,” India’s largest commercial vehicle manufacturer said in a release.
For most of last year and earlier this year, the auto industry faced high input costs due to rise in commodity prices. This put pressure on margins of the company and led to passing the cost to customers in a gradual manner. Though, commodity prices have softened since then.
Earlier in the month, Tata Motors posted a tepid 1.9 percent YoY growth with total sales at 32,077 units in August 2023 against 31,492 units in the same month last year.
Domestic sale of medium and heavy internal combustion vehicles (M&HICV) in August 2023, including trucks and buses, stood at 13,306 units, compared to 12,069 units in August 2022. Total sales for M&HICV Domestic & International Business in the month stood at 13,816 units compared to 12,846 units in August 2022.
The largest growth came in passenger carriers, registering sales growth of 30 percent YoY. Sales of Heavy Commercial Vehicles (HCV), which primarily includes trucks, rose 14.4 percent YoY.