Tata Motors, the country’s largest commercial carmaker, announced on Tuesday that from October 1, 2021, the pricing of its commercial vehicles will increase by up to 2%. “The effective price hike, in the range of 2%, will be implemented based on the model and the variant of the vehicle,” the company said in a filing. The decision to raise pricing was based on a rise in the cost of commodities and raw materials, according to the automaker.
“As the cost of commodities such as steel and precious metals continues to climb, the corporation is forced to pass some of the cost on to customers in the form of higher product prices. Tata Motors has also worked to keep the price rise to a minimum by absorbing a percentage of the cost at various stages of production,” the company added. This is the carmaker’s second price increase in less than two months. It had raised the pricing of its passenger vehicles by an average of 0.8 percent in August, with the exception of the ‘New Forever’ line.
Tata Motors isn’t the only automaker suffering from high input costs. To offset growing input costs, Maruti Suzuki, the country’s second largest carmaker, raised the pricing of its Swift hatchback and CNG variants of other models by up to Rs 15,000 in July. Honda did the same thing in August when it announced a price increase across the board in India to mitigate the impact of increased commodity prices.