1 min read.Updated: 21 Dec 2020, 06:30 PM IST Edited By J. Jagannath
The actual change in price will depend on individual model, variant and fuel type, says the automaker
New Delhi:Tata Motors on Monday announced price increase across its commercial vehicle range, effective 1 January, 2021. Price increase is expected across the portfolio of M&HCV, I&LCV, SCV & buses. The actual change in price will depend on individual model, variant and fuel type.
Tata Motors said that the steady rise in material and other input costs, impact of forex and transition to BS-6 norms, have cumulatively escalated the cost of manufacturing vehicles. "It has become imperative to pass at least some portion of input cost increase to customers," said the company.
The move comes at a time when early every automaker has announced a price hike to offset the input costs.
Indian automakers' plans to pass on higher commodity prices to customers will dim the prospects for a demand recovery after December when the boost in some categories from pent-up demand and festive spending fades and the economic impact from the coronavirus pandemic reasserts itself, Fitch Ratings said on Thursday.
Pent-up demand after gradual easing in the government's lockdown measures helped monthly wholesale volume of passenger vehicles (PVs) return to growth after July. PV wholesale volumes rose by 13 per cent year-on-year in the quarter ended September.
Festive demand helped sustain the growth after September but the pace slowed to 5 per cent in November from 14 per cent in October. This is even after including timing benefit from the Diwali festival falling in November instead of October. This indicates that pent-up demand is tapering off, said Fitch.
Having endured and managed to recover from the disruptions induced by a once-in-a-century event, the Indian auto sector is cautiously looking forward to 2021 with hopes of putting up a better show in the post-COVID-19 world, although a lot will hinge on how the economy grows.
Already battered by an unprecedented slowdown before the coronavirus pandemic, the resilience of the Indian auto industry was tested severely when the nationwide lockdown was announced towards March-end.
Passenger vehicle sales in India, the barometer of the automobile industry's performance, plunged 78.43 per cent in the April-June period this year hit by the pandemic, declining for the ninth straight quarter and making it the longest slowdown in 20 years.
It is estimated that during the prolonged lockdown, the auto industry suffered losses of more than ₹2,300 crore in turnover for every single day of closure.