Tata Motors to hike prices by 2.5 percent on commercial vehicles from April 1

Rapid increase in prices of steel, aluminium and other raw materials has incited this price hike of commercial vehicles, said Tata Motors.

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Tata Motors on March 22 said it will hike prices of its commercial vehicles range by 2-2.5 percent, depending upon individual model and variant, from April 1.

The rapid increase in the prices of commodities, such as steel, aluminium and other precious metals -- in addition to higher costs of other raw materials -- has incited this price hike of commercial vehicles, Tata Motors said in a regulatory filing.

"While the company has initiated actions to absorb a significant portion of the increased costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimized price hike," it added.

Last week, Mercedes-Benz India had said it would increase prices of the entire model range by up to 3 percent from April 1 in order to partially offset the impact of the increase in input costs. The luxury automaker came to this decision in order to partially offset the impact of an increase in input costs.

(With inputs from PTI)