On Tuesday, commercial vehicle manufacturer Ashok Leyland Ltd announced a minimum 2% price hike across all categories with effect from 1 April 2018. And, what better time to pass on cost pressures than now, when the demand for commercial vehicles is skyrocketing. 2 commercial vehicle maker) hikes prices due to cost increases, others tend to follow because cost pressures tend to be an industry phenomenon.”Meanwhile, competition in both M&HCV and light commercial vehicles is high. That said, strong demand and ability to hike prices and pass on cost pressures has aided profitability. The price hikes in the wake of continuing discounts will therefore help improve profitability at least as long as the upturn in the commercial vehicles cycle lasts.

Source: Mint March 28, 2018 02:37 UTC