Commercial vehicle maker Ashok Leyland today said it will increase prices of its products by up to 15 per cent once the new emission norms come into effect from April, across the country.
The company is also expecting its sales to grow by about 18 per cent during this fiscal on the back of renewed demand.
"With the implementation of new emission norms from April 1, we will offer technology complying with the regulations. This upgrading will result in price increase," Ashok Leyland Director and Chief Operating Officer Vinod K Dasari told reporters at the Defence Expo here.
Passenger cars and commercial vehicles will switch over to Bharat Stage IV emission norms in 13 cities, while rest of the country will become Bharat Stage III compliant from April.
"The cost increase will be 10-15 per cent and we will raise the prices accordingly," Dasari said.
On sales front, he said the company is expecting to sell 65,000-66,000 units this fiscal compared to about 56,000 units during 2008-09. "Demand is not an issue, but creating capacity is the challenge."
When asked about its upcoming facility in Uttarakhand, Dasari said: "We will operationalise the plant on March 5 with an initial production of 50,000-75,000 units a year."
The company has a capacity to produce 1 lakh units every year from its five facilities, two in Hosur (Tamil Nadu), and one each at Ennore (Tamil Nadu), Alwar (Rajasthan) and Bhandara (Maharashtra).
