Chennai: After the car and SUV, now trucks and buses will cost 2-2.5% more than January because producers quote a sharp increase in raw material costs, especially steel.
Tata Motors has announced that it will raise prices “in the range of 2.5% from January 1, 2022” in various segments of medium & heavy commercial vehicles (CVS), medium and light CVS, to small CVS and buses.
“Increased commodity prices such as steel, aluminum and other precious metals, in addition to higher costs than other raw materials, has finished this price increase for commercial vehicles,” said the company.
This previously climbed the price of CV by 2% in October.
Ashok Leyland also decided to enter for price increases throughout January with a markup set around 2%.
Like Tata Motors, Leyland has also increased the earlier price this year – 2% in March and July.
Others such as Volvo Eicher Commercial Vehicles (VECV) also see markups to pass parts of rising raw material costs.
VECV MD & CEO of Vinod Aggarwal said, “We also think of price increases as they are now very important.
The price of double steel in the past year and other components such as tires have also seen a sharp price increase.
There is no alternative price increase.” Icra’s VP Shamsher The Board said, “Climbing was due to pressure on the side of the raw material, but demand also increased.
Especially for heavy trucks assisted by requests from infrastructure expenditures, e-commerce, and retail.”