New Delhi: Tata Motors, the country's largest automaker, announced on Monday that it will hike prices of its commercial vehicles by 2.5 percent starting January 1 to offset rising commodity and raw material costs. Tata Motors said in a regulatory filing that the price increase will apply to medium and heavy commercial vehicles (M&HCV), intermediate and light commercial vehicles (I&LCV), small commercial vehicles (SCV), and buses, depending on the model and variant of the vehicle.
"Rising prices of commodities such as steel, aluminium, and other precious metals, as well as rising expenses of other raw materials, have prompted this price increase for commercial vehicles," it said. "The sharp rise in overall input costs makes it important to pass on some residual fraction via a minor price raise," Tata Motors said, adding that the company is absorbing a significant portion of the additional costs at various levels of manufacture. Already, Maruti Suzuki India, Mercedes-Benz, and Audi have announced price increases beginning next month, citing increased input and feature improvement expenses.