Tata Motors said on Tuesday it would increase prices for its line of utility vehicles by around 2% effective Oct. 1, to offset the impact of rising input costs.
The actual price hike, in the order of 2%, will be implemented depending on the model and variant of the vehicle, the automotive major said in a statement.
The continued rise in the cost of commodities, such as steel and precious metals, is forcing the company to pass some of that on through rising product prices, he said.
Tata Motors is the country’s largest manufacturer of commercial vehicles, which includes trucks, buses and light commercial vehicles.
The company said it had made an effort to minimize the price increase by absorbing some of the cost at various levels of manufacturing.
Over the past year, there has been a gradual increase in the prices of various essential commodities like steel and precious metals. This has resulted in increased input costs for automakers.
Earlier this month, the country’s largest automaker, Maruti Suzuki India (MSI), had raised prices across its entire product line, except Celerio, by up to 1.9% .
The company noted that it had made the decision to increase prices due to an increase in the costs of various inputs.
This was MSI’s third price hike this year.
In the two-wheeler business, Hero MotoCorp has already raised prices three times this year.
The company has revised upward the non-showroom prices of its motorcycles and scooters by Rs 3,000 effective September 20.
The two-wheeler major had previously raised the prices of its motorcycles and scooters to Rs 1,500 in January, and again by Rs 2,500 in April this year, citing increased input costs.