DAIMLER TRUCK WILL INCREASE TRUCK PRICES. THE GROWTH MAY EVEN BE DOUBLE-DIGIT
The German truck manufacturer Daimler Truck plans to compensate for the rising costs of raw materials and energy with price increases. Jochen Goetz, the finance director at the company, explained that we could expect additional spending of up to hundreds of millions of euros during the entire year. They are to be compensated by double-digit increases in truck prices in Europe and the United States – we read in the German daily Süddeutsche Zeitung.
Increasing the prices of trucks will be easy to do, as the demand for them currently increases on the market, and we expect it to continue in 2023. However, according to the manufacturer, consumers will bear the higher costs of purchasing vehicles.
We are back in a world of fast-moving inflation to which we were no longer used to, adds Goetz.
Despite problems with the supply of components, the manufacturer in the first quarter increased sales, revenues, and adjusted operating profit. Adjusted by a special positive factor, the operating result increased by 11 percent, up to EUR 651 million. In part, thanks to price increases, sales increased even more than in the same period last year, by 17%, up to EUR 10.6 billion. With the result of 109 000 items, Daimler Truck delivered 8 percent more cars than a year ago. The group also confirmed its annual forecasts and even increased its projected sales range by 2.5 billion euros to 48-50 billion euros. The company expects to sell 500 000-520 000 trucks this year.
INCREASE IN TATA MOTORS
Tata Motors group, which operates in India, Great Britain, South Korea, Thailand, South Africa, and Indonesia, also raised vehicle prices. The manufacturer announced in April this year that commercial vehicle price increases of 2-2.5% depending on the type and model.
The concern informed that the increase in prices was due to the rise in prices of raw materials. “Higher prices for commodities such as steel, aluminum, and other precious metals, combined with higher costs for different raw materials, have driven up the price of commercial vehicles. Although the company has initiated measures to absorb a significant portion of the increased costs at various levels of production, the sharp increase in overall expenditure makes it necessary to transfer some of it through a minimal price increase, the company said in a statement.
It is the second price hike this year. In January, Tata Motors slightly increased the prices of its passenger cars.