Following the announcement of price hikes by truck makers like Tata Motors and Mahindra

RELATED ARTICLES Nomura downgrades Ashok Leyland to neutral Ashok Leyland Q4 net profit falls 13%

& Mahindra, Hinduja flagship Ashok Leyland is set to announce an increase in prices of its medium and heavy-duty trucks on Monday.

The company is expected to announce a three per cent hike in prices of its trucks. This will be the third price hike effected by the company in the current fiscal.

“We have decided to increase the prices of our vehicles by about three per cent. We are likely to make an announcement on Monday,” a top company official told Financial Chronicle.

Ashok Leyland announced a price increase of three per cent in June this year amounting to Rs 20,000 to Rs 50,000 per vehicle and 1.5 per cent (about Rs 15,000 per vehicle) in April this fiscal due to increase in raw material prices. The company also indicated that the prices of medium and heavy-duty trucks would go up as a result of technological changes in vehicles conforming to new emission norms. The prices of BS III trucks would cost around Rs 40,000 more than the BS II models, while BS IV trucks would be priced about Rs 1 lakh more than BS III models.

Last week, M&M and Tata Motors increased the prices of their commercial vehicles in the range of Rs 3,000-8,000 and Rs 5,000-40,000, respectively. Over the last 15 months, commercial vehicle makers have undertaken frequent price increases to offset the increase in input costs and improve their margins. They also indicated that they would pass on some of the price increase to buyers in view of the new emission standards that are to come into effect from this month.