TATA Motors recently announced that it will increase the price of commercial vehicles with effect from 1 October 2023. The price hike will be almost 3 percent, and this is the third price raise of CVs by the company in the current calendar year.
According to TATA Motors, "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."
To comply with the new vehicle emission rules, previously the company hiked the rates of commercial vehicles by 1.2 percent in January, and almost 5 percent in March.
According to a report by Reuters, "India implemented stricter norms through phase II of Bharat Stage 6 from April 1, including testing real-time driving emissions, leading to increased costs for automakers."
As per several online reports, it has been speculated that the due to rising costs of Indian commercial vehicles, their sales rates may decline in the country. Meanwhile, TATA Motors is strengthening its roots in the field of fastest growing electric vehicles (EVs). The company is rumoured to try its luck in the international export of electric vehicles. However, the target markets and other specific details are yet to be known.
In the April to June quarter of FY24, the passenger vehicle segment of TATA Motors posted a strong growth of 8% to 1,40,450 units in the June quarter, buoyed by new launches and a strong SUV (sports utility vehicle) and EV portfolio. The company’s EV sales, in the June quarter, surged by 105% to 19,346 units as against 9,446 units in the same period last year, reported by fortuneindia.com.
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