Second hike in three months: Tata Motors raises commercial vehicle prices by up to 2.5%

Tata Motors announced a price increase of up to 2.5 per cent across its commercial vehicle portfolio, marking the second hike in three months as India's largest truck and bus maker grapples with rising commodity prices and higher input costs.

The revised prices will come into effect from July 1 and will vary depending on the model and variant, the company said in a statement.

"The price increase is being undertaken to partially offset the impact of rising commodity prices and other input costs," Tata Motors said.

The latest move follows a previous increase of up to 1.5 per cent in commercial vehicle prices that came into force on April 1. At the time, the company had also cited higher input costs as the primary reason behind the hike.

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The back-to-back increases come as automakers across India face mounting pressure from rising raw material prices, including steel and other key commodities, amid global supply chain disruptions and uncertainty linked to the conflict in West Asia.

Vehicle manufacturers have increasingly resorted to passing on a portion of these higher costs to customers in an effort to protect margins.

Earlier this month, Tata Motors Passenger Vehicles announced a price increase of up to 1.5 per cent across its range of passenger vehicles, including electric vehicles, effective July 1. That was the company's second passenger vehicle price revision in four months.

The trend is not limited to Tata Motors. Rival carmaker Maruti Suzuki recently increased vehicle prices by up to Rs 30,000 from June, while Hyundai Motor India also implemented a price hike from June 1, citing rising operational and input costs.

Industry analysts say sustained volatility in commodity markets, coupled with higher logistics and procurement expenses, has forced automakers to reassess pricing strategies despite concerns that repeated increases could weigh on consumer demand.

The latest revision by Tata Motors is expected to affect a wide range of commercial vehicles, from small cargo carriers to heavy-duty trucks and buses, at a time when fleet operators are already contending with elevated operating costs.

Tata Motors remains the dominant player in India's commercial vehicle market and has been focusing on improving profitability and operational efficiency while navigating a challenging cost environment.