Tata Motors can see rising commodity prices hitting margins in future but expects to offset it through price hikes and cost cutting, a senior executive has said.
The firm’s margins came under pressure in the December quarter as prices of raw materials such as steel, aluminium and copper rose during the latter part of the year, Reuters reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“We are undertaking cost reduction initiatives…we usually intensify it during such times…to some extent we have to pass on these cost increases, which benefit the margins,” Ravi Pisharody, head of the automaker’s commercial vehicles business, told the news agency.
A rise in truck prices is also imminent due to costs equipping vehicles to comply with new emission rules, he added.
Trucks in India’s 13 major cities will have to be Euro IV-compliant from 1 April while the rest of the country will mandate Euro-III standards.
