Tata Motors to hike prices of commercial vehicles from Jan 1

Due to increase in the prices of commodities an increase in price by 2.5% will be implemented from January 1, 2022 , says the company

Tata Motors, India’s largest commercial vehicle manufacturer, has announced a price hike of its commercial vehicle range. An increase in price in the range of 2.5%, will be implemented from January 1, 2022 and will be put into effect across segments – M&HCV, I&LCV, SCV and Bus, basis individual model and variant of the vehicle, the company said on Monday.

"The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials has incited this price hike commercial vehicles. While the company is absorbing a significant portion of the increased costs at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimal price hike," the company said in a stock exchange filing.

Car market leader Maruti Suzuki India along with luxury carmakers Mercedes-Benz and Audi on Thursday said they will increase prices from January to offset rising input and feature enhancement costs.

While Maruti said the price rise planned for January 2022 will vary for different models, Mercedes-Benz India said its hike will be on select models by up to up 2% due to feature enhancement and rising input costs. Maruti has already hiked the vehicle prices three times this year -- by 1.4% in January, 1.6% in April and 1.9% in September, taking the total quantum to 4.9%.

The company sells a range of models, starting from hatchback Alto to SUV S-Cross, with prices starting from Rs 3.15 lakh to Rs 12.56 lakh, respectively (ex-showroom, Delhi).

On the other hand, Audi said its price increase effective January 1, 2022 will be up to 3% across its entire model range owing to rising input and operational costs.

Mercedes-Benz noted that in order to offset the costs for feature enhancements amidst rising inputs costs, it will upwardly revise the ex-showroom price of only select models.

The price revision ranging up to 2% will be in effect from January 1, 2022, it added.