Tata Increases CV Prices
Tata Motors has increased prices across its commercial vehicle range by 2.5 per cent, despite the fact that the Indian CV market appears to be weakening.
This report says that the price increase has been brought about by the costs involved in meeting new mandated regulations for safety and to partially offset increase in input costs. The increase will apply across the entire Tata CV range. It’s uncertain quite what impact this will have on Tata’s fortunes. Yesterday, we reported on Ashok Leyland’s less-than-stellar September performance, and it seems that market conditions are getting tough. Today, Angel Gurría, the Secretary-General of the OECD gave a presentation on the Indian economy in New Delhi, in which his words were not minced. Notably, he drew attention to Indian manufacturing performance, saying that: “Although performance has been improving this decade, the surprising feature of the Indian economy has been the relatively mediocre development of the manufacturing sector, despite the underlying advantage of low labour costs.” More detail from what is a rather interesting speech can be read here, but we wonder what the OECD’s position means relative to future, predicted boom times for truck makers now entering the Indian market.