TaMo announces third price hike for CVs in 2024 amid rising commodity costs

Tata Motors, India’s largest commercial vehicles (CVs) manufacturer, said it will raise prices of its CVs by 2 per cent from July 1. This will offset the impact of rising commodity prices.

This is the third time this year that Tata Motors has raised prices of its commercial vehicles. The hike will be applicable across the entire range of commercial vehicles, with variations depending on individual models and variants.

In January this year, the prices of CVs were raised by 3 per cent due to residual impact of the past input costs and were applicable across the entire range of commercial vehicles.

Similarly in April, the price was increased by 2 per cent to offset lingering impacts of past input costs. Together, since the start of this year, the automotive giant has hiked prices by 7 per cent for CVs.

The Indian commercial vehicles’ industry is expected to face a decline of 4-7 per cent in wholesale volumes for FY25, according to rating agency ICRA.

This expected decline follows a period of muted growth and is influenced by a high-base effect from previous financial years, as well as a slowdown in economic activities due to the general elections.

Infrastructure projects, crucial drivers of commercial vehicle demand, are likely to be impacted by the anticipated downturn.

Since January, China’s spot steel HRC prices — a key raw material for CVs — went down by 6 per cent.

However, since spot prices of aluminium, copper, zinc, and tin were up by 9.7 per cent, 12 per cent, 7.2 per cent and 28 per cent, respectively, on the London Metal Exchange (LME), input rates of CVs had gone up. Hence, the prices had to be raised.