The Hindu Business Line : Tata Motors hikes CV prices by 3%

Mumbai, July 1 Tata Motors, the country’s largest commercial vehicle manufacturer, has further hiked the CV prices by three per cent in less than three months.

“We have hiked the prices across the entire range of commercial vehicles. The price rise varies according to the models but the average hike is three per cent,” said a Tata Motors spokesperson.

The company has not given much details about the fresh round of price hike other than saying that this is on account of the escalating input cost. The new prices came to effect on July 1.

Tata Motors had earlier hiked the commercial vehicle prices by 3.5 per cent in the first week of April. Prior to that, the company had slashed the prices of CVs by two per cent following the excise duty cut and Cenvat reduction announced in the budget. The company increased the price of passenger and utility vehicles between one and three per cent in June.

The latest price hike comes at a time when the CV industry was facing challenges due to increasing cost of finance and fuel price rise. According to the new pricing, the high-end Novus tractor may cross Rs 32 lakh, the Rs 16 lakh multi-axle truck would become costlier by Rs 50,000.

Sales up 5.5%

Tata Motors reported 5.5 per cent growth in the CV segment.

“Price rise happens across the world. Since the cost of finance and running cost also have been hiked, the CV market may witness a flat growth this year also. But situation should not be worse, given the economic activity on the ground,” said an analyst with Dolat Capital Market Private Ltd.

Tata Motors share price was 4.23 per cent down at Rs 408.43 on the BSE on Tuesday.

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