Tata Motors may hike truck prices further
07 Jan 2010
Tata Motors, India's biggest truck maker, yesterday said that it has increased prices of some of trucks and bus models by about 1 per cent this month, and it would have to raise prices further if the cost of inputs rises significantly.
"Tata Motors has passed on some (input cost) burden to customers in specific segments ... we have increased prices by about one per cent from this month," Tata Motors president (commercial vehicle business unit) Ravi Pisharody told reporters at the 10th Auto Expo in New Delhi.
While all heavy vehicles (16 tonnes and above) will be affected by the price hike, some models in the lower tonnage (3.5-7 tonnes) will also be impacted, he said, adding that the price hike was also due to the introduction of new features.
The price of steel, a major input in vehicle manufacture, has gone up by about $60-80 a tonne in the past two months to over $550 a tonne, he pointed out.
On withdrawal of stimulus measures introduced by the government to boost demand in the economy during the slowdown, he said if stimulus is withdrawn, the sector will see some temporary slackening in demand. "But the outlook looks good as the fundamentals of our economy is strong."
Pisharody also expects sales of commercial vehicles to remain strong this year - "At least over the next 12 months, I can see it continues to be strong," he said.
