Commercial vehicle maker Ashok Leyland on Friday announced a price hike of up to 3 per cent on its product range. The rise in prices will come into effect in January 2025 and applies to its entire range of commercial vehicles, the Hinduja Group company said in a regulatory filing.
“The extent of price increase will vary depending on model and variant. However, all products across the range will be affected,” read the statement from Ashok Leyland, citing inflation and higher commodity prices.
“This move will help mitigate a part of the input cost impact,” said the company headquartered in Chennai, Tamil Nadu.
As of date, Ashok Leyland, which is a listed company, is the second biggest commercial vehicle manufacturer and the fourth largest manufacturer of buses in the world.
Ashok Leyland and Tata Motors price hike likely to hamper commercial vehicle market outlook?
The markets, however, did not take lightly to the announcement as shares of Ashok Leyland traded in the red in the first hour after markets opened. From yesterday's close of Rs 230 apiece, shares fell to as low as Rs 225.74 before 10am on Friday.
The mention of inflation and rising prices seem to have had an impact on the outlook of the sector.
Shares of the largest commercial vehicle manufacturer in the country, Tata Motors, also saw its shares dip in Friday morning trade.
Ashok Leyland’s announcement comes at the heel of Tata Motors declaring a 2 per cent hike in its trucks and buses portfolio, according to the latter’s regulatory filing after markets closed on Thursday. “The price increase is to offset the rise in input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of trucks and buses,” read the Tata Motors statement.
SML Isuzu, the other major name in commercial vehicles, also saw a dip in shares.