Latest News: Tata Motors To Increase Price Of Its Commercial Vehicles
Published On Sep 19, 2023 01:50 PM
Tata Motors' decision to raise the prices of its commercial vehicles, starting October 1, 2023, prompts the question: What's the impact on both the automaker and its customers? Here are the crucial details.
Tata Motors has announced a price increase of up to 3 percent for its commercial vehicles, effective October 1, 2023. This move is expected to boost the company's profitability and revenue, assuming sales continue to grow.
Tata Motors said in the press release that, “the price increase is to offset the residual impact of the past input costs, and will be applicable across the entire range of commercial vehicles.”
According to market leaders in the commercial vehicle sector, the industry has experienced a significant increase in input costs due to rising commodity prices. This has put added pressure on commercial vehicle manufacturers, ultimately leading to higher costs for customers.
Nonetheless, considering the growth trajectory wherein the market leader- Tata Motors witnessed a year-on-year growth of total sales at 32,077 units in August 2023 against 31,492 units in the same month last year, the automaker is expected to continue to witness a similar pattern in the near future.
Furthermore, in August 2023, domestic sales of MH&ICV, encompassing both trucks and buses, reached 13,306 units, as opposed to 12,069 units in August 2022. Assuming this growth trend persists, Tata Motors may not experience a significant decline in sales growth despite the price increase. However, this is merely an assumption, and we must wait to see what the future holds.
Related Link: Commercial Vehicle Sales July 2023: Ashok Leyland And Mahindra Report Growth While Tata Motors Sales Dip
Recent Launch From Tata Motors:
Despite the forthcoming price increase, Tata Motors has unveiled the all-new LPT 1916, showcasing its robust presence in the commercial vehicle market. The brand asserts that the Tata LPT 1916 offers the highest payload capacity in its segment and is equipped with a reliable and fuel-efficient 3.3-litre diesel engine.
With a walkthrough LPT cabin designed for driver comfort, in day and sleeper configurations and equipped with the latest features like cruise control, Gear Shift Advisor, dual-mode fuel economy switch, low-rolling-resistance tyres and engine brake, the LPT 1916 is expected to take the market by storm.
Price Increase: How Does It Impact?
The price increase was an inevitable factor for Tata Motors considering the fact that the input costs were significantly higher. While it may be an inconvenience to customers, it's worth noting that Tata Motors provides one of the best commercial vehicles in the market, and the price increase should not adversely affect the automaker or the profitability of its customers.
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