- By Vaamanaa Sethi
- Tue, 19 Sep 2023 12:45 PM (IST)
- Source:JND
Tata Motors announced that it will raise the prices of its commercial vehicles by up to 3% from October this year, which will be the third hike this calendar year to offset the residual impact of post-input costs, according to a report by Reuters.
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The company further added that the price hike will be effective from October 1 and the hiked price range will be applicable across its range of commercial vehicles.
Previously, the company raised prices by 1.2% in January and then 5% in March to ensure its vehicle met the new emission norms. On April 1, India enforced more stringent regulations as part of Phase II of Bharat Stage 6, which includes the testing of real-time driving emissions. This move has resulted in elevated costs for automotive manufacturers, Reuters report revealed.
A Fitch report, which came a day ago, said that India's commercial vehicle sales volume will slow down to low-to-mid-single digits due to rising ownership costs.
According to the Fitch report, the adoption of the most recent emission standards is expected to result in an approximately 5% increase in the prices of commercial vehicles starting in April 2023.
Meanwhile, Tata Motors is in the process of creating specialized dealerships in India, specifically designed to cater to electric vehicles, as part of its strategy to further strengthen its position in the fast-growing electric vehicle market.
The company is also in the process of finalizing its international strategy, which could potentially involve the export of electric cars; however, specific target markets were not disclosed.
Tata intends to allocate approximately $2 billion towards the development of battery-powered models by the year 2027.
The company reported sales of 4,613 electric passenger vehicles, including the Tigor, Nexon, and Tiago EV models, in India last month, marking a 65% increase compared to the previous year.