Tata Motors to increase prices of commercial vehicles by 2% from July. Will other automakers follow suit?

Tata Motors Limited will increase the prices of its range of commercial vehicles, effective July 1, 2024. The up to 2% hike comes in the wake of escalating commodity prices and will be implemented across all models and variants.

As part of the $150 billion Tata Group, Tata Motors, with a turnover of $44 billion, is a leader in India's commercial vehicle sector and ranks among the top three in the passenger vehicle market.

Tata Motors' share price was trading down 0.18 per cent at ₹983.85 on June 19, at 12:27 pm, on the BSE.

The revised pricing will apply to the entire range of commercial vehicles, with specific increases varying by model and variant.

"Tata Motors Limited to increase the price of its Commercial Vehicles from July 1, 2024," the company said in an official statement.

Tata Motors reported sales of 29,691 commercial vehicles in May, reflecting a 2 per cent growth compared to the same month last year, ANI reported.

A closer look at the truck sales data revealed mixed outcomes. Total truck sales stood at 12,402 units, but sales of Heavy Commercial Vehicles (HCVs) saw a slight decline of 3 per cent, from 8,160 units in May 2023 to 7,924 units in May 2024.

Conversely, the Intermediate Light Medium Commercial Vehicle (ILMCV) segment recorded significant growth, with sales rising by 30 per cent from 3,450 units in May 2023 to 4,478 units in May 2024.

Industry experts anticipate that other automakers might follow Tata Motors' lead and raise vehicle prices in response to the escalating commodity costs.