10-12% price hike in commercial vehicles likely: Credit rating agency Icra

Credit rating agency ICRA projected that the Indian commercial vehicle (CV) industry could face a potential price hike of 10-12 per cent due to the implementation of multiple proposed regulatory changes.

The government has been increasing its focus on emission norms, safety systems, and other standards in the automotive industry. In recent years, the industry has adopted stringent emission standards, as well as driver safety and comfort standards such as advanced braking systems (ABS) and speed-limiting devices (SLD).

In addition, there are a number of proposed regulatory changes that could further increase the cost of CVs. These include the mandatory fitment of air-conditioners (ACs) in driver cabins, effective from January 1, 2025. Additionally, there are plans for the implementation of blind spot information systems, advanced emergency braking systems, roll-over protection systems, and driver alert systems. Specific segments, such as school buses and inter-city buses, will be subject to new regulations mandating the inclusion of fire detection, alarm, and suppression systems, commencing on October 1, 2023. Several key players in the CV sector have already taken steps to adapt to the changing regulatory landscape. Tata Motors raised prices by up to 5 per cent on its commercial vehicles from April 1, 2023, to comply with the more stringent BS6 Phase-II emission norms.