Tata Motors on Monday announced that it will raise the prices of its commercial vehicles by up to 3%, its third hike this calendar year to offset the residual impact of post-input costs, according to a report published by Reuters.
The price hike will be effective from October 1. The increased prices will be applicable across its range of commercial vehicles, the Indian automaker said.
Previously, the company raised prices by 1.2% in January and by 5% in March to ensure its vehicles comply with the new emission norms.
India implemented stricter norms through phase II of Bharat Stage 6 from April 1, including testing real-time driving emissions, leading to increased costs for automakers, as per Reuters reports.
Earlier in the day, ratings agency Fitch said that India’s commercial vehicle sales volume will slow down to low-to-mid-single digits due to rising ownership costs.
The Fitch report further added that the implementation of the latest emission norms will lead to nearly a 5% rise in the prices of commercial vehicles from April 2023.
Meanwhile, Tata Motors is in the process of creating specialized dealerships in India, specifically designed to cater to electric vehicles, as part of its strategy to further strengthen its position in the fast-growing electric vehicle market.
The company is also in the process of finalizing its international strategy, which could potentially involve the export of electric cars; however, specific target markets were not disclosed.
Tata intends to allocate approximately $2 billion towards the development of battery-powered models by the year 2027.
The automaker is reinforcing its domestic electric vehicle supply chain with the construction of a battery factory in the western state of Gujarat, which is projected to have a production capacity of 20 gigawatt hours.