The largest commercial vehicle maker Tata Motors today said the recent steep diesel price hike is a matter of concern for transporters but termed the move as a significant part of the reform measures essential for the economy.

“Transporters are very concerned; it is a large increase on a single day. But their ability to pass on the hike to their clients would depend on the market. If it remains the way it has been in the first half, it would be difficult,” Tata Motors executive director for commercial vehicles Ravi Pisharody told reporters after launching six new heavy trucks here.

Noting that there is a lot of competition in the transport business, he said it is the load factor that makes the industry viable.

“They are looking at that...If the load factor goes up as we are seeing some improvement particularly in September and the government’s reform agenda picks up steam, then there will be an increase in transportation of goods which will in turn lead to investment in infrastructure and the resultant increase in load factor,” he said.

He said that Tata Motors expects a 15-20 percent surge in its commercial vehicles sales in the second half over the first half and pointed out that traditionally the second half is stronger, particularly the last quarter.

“However, for the full year, we are likely to end up with slight decline in the MCV and HCV sales,” he said.

The company launched six new heavy and medium trucks and an intelligent vehicle and driver management solutions called Tata FleetMan Telematics Services.

The top-end version of the Tata Prima range has now been further extended with the launch of two new engine capacities of 380HP and 230HP.

The company did not give the price details of any of the new models.

To a question on price increase for the commercial vehicles, Pishrody said there is no plan at least for the next two-three months as the company has already revised the prices in the first and second quarters.

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