The price increase is intended to counteract the residual impact of previous input increases and will apply to the complete range of commercial vehicles.
Tata Motors operates in India, the United Kingdom, South Korea, Thailand, South Africa, and Indonesia. Tata Motors sells vehicles in Africa, the Middle East, Latin America, Southeast Asia, and the SAARC countries.
TATA MOTORS said on September 18 that it will raise the pricing of its commercial cars by up to 3% beginning October 1, 2023. If sales growth continues, this will result in more revenue for the corporation starting in the next quarter.
“The price increase is to offset the residual impact of past input costs, and will be applicable across the entire range of commercial vehicles,” India’s largest commercial vehicle manufacturer said in a statement.
The car industry suffered high input costs due to rising commodity prices for the most of last year and early this year. This put pressure on the company’s profits, causing the expense to be passed on to customers gradually. However, commodity prices have since fallen.
Earlier this month, Tata Motors reported a 1.9 percent YoY increase in total sales to 32,077 units in August 2023, up from 31,492 units in the same month previous year.
Domestic sales of medium and heavy internal combustion vehicles (M&HICV), comprising trucks and buses, were 13,306 units in August 2023, up from 12,069 units in August 2022. M&HICV Domestic & International Business totaled 13,816 units in August 2022, up from 12,846 units in August 2022.
Passenger airlines saw the most gain, with sales increasing by 30% year on year. Heavy Commercial Vehicle (HCV) sales, which largely involve trucks, increased 14.4 percent year on year.