Tata Motors to raise commercial vehicle prices from October 2021

India’s largest commercial vehicle manufacturer, Tata Motors announced on Tuesday that it will increase the prices of its commercial vehicles in the range of two per cent from October 1, 2021. The hike in prices would be implemented based on the model and the variant of the vehicle. 

The continued rise in the cost of commodities, such as steel and precious metals, has brought on the need for automakers such as Tata Motors to pass on a part of these higher costs to the consumers. 

After the BS-VI switchover, the extent of steel, plastics and rhodium which go into the production of vehicles has increased significantly and the constant rise in input cost is causing a cascading effect on the operating performance of auto companies. 

Tata Motors Limited sales in the domestic and international market for August 2021 stood at 57,995 vehicles, compared to 36,505 units during August 2020. The SUV line-up of the company has aided the growth in the topline. The company sold 54,190 units in the domestic market in August 2021. Comparatively, Tata Motors had registered a sale of 35,420 in August 2020. 

On Tuesday, the stock of Tata Motors closed at Rs 301.85, up by 0.94 per cent or Rs 2.80 per share, against a 0.88 per cent gain in the benchmark index. The 52-week high of the company was recorded at Rs 360.65, while its 52-week low is Rs 122.15.