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.
“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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData