India’s Tata Motors to hike commercial vehicle prices for third time in 2023

Tata Motors will raise the prices of its commercial vehicles by up to 3%, effective from October 1st. This marks the third price hike this calendar year for the company.

Earlier in the year, Tata Motors implemented two price hikes. In January, prices were raised by 1.2%, and in March, there was a more substantial increase of 5%. These adjustments were primarily made to ensure compliance with new emission norms.

India introduced stricter emission norms, known as Bharat Stage 6, with phase II implementation starting from April 1st. This included real-time driving emissions testing, which resulted in increased costs for automakers.

A ratings agency, Fitch, published a report highlighting that rising ownership costs would likely slow down commercial vehicle sales volume in India, projecting low-to-mid-single-digit growth. Fitch also stated that the latest emission norms would lead to an additional 5% increase in the prices of commercial vehicles starting from April 2023.