Tata Motors announced that there will be a price increase across its commercial vehicle range, effective 1 January 2021.
The steady rise in material and other input costs, impact of forex and transition to BS6 norms, have cumulatively escalated the cost of manufacturing vehicles. The company had thus far been absorbing the addition in costs but with their steady rise in line with market trend, it has become imperative to pass at least some portion of the cost increase to customers via appropriate price revisions, Tata Motors said in a filing.
The price increase is expected across the portfolio of medium and heavy commercial vehicles (M&HCV), light commercial vehicles (LCV), small commercial vehicles (SCV) and buses, the company said. The actual change in price will depend on individual model, variant and fuel type, it added.
The announcement was made after market hours yesterday, 21 December 2020. Shares of Tata Motors dropped 8.84% to settle at Rs 164.55 yesterday.
Tata Motors is a global automobile manufacturer of cars, utility vehicles, pick-ups, trucks and buses.
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