On Saturday, September 30, 2023, the commercial vehicle manufacturing company SML Isuzu announced that the prices of its trucks and buses would be increased with effect from October 3. Yes, you heard it right, SML Isuzu is about to increase the prices of its buses and trucks significantly from October 3, 2023. This decision was made by the commercial vehicle maker company in an attempt to tide over the surge in input cost. Since this news broke out, people have been wondering the reason for the sudden surge in the prices of school buses and trucks. However, we have mentioned the reason for the increase in SML Isuzu commercial vehicles’ prices. In case, you are also scrambling to the web regarding the same, this article is for you. Continue reading this article.
FAPS forces SML Isuzu to increase price
In a bid to tide over the surge in input cost, SML Isuzu decided to hike the prices of its commercial vehicles, confirmed by a regulatory filing on September 30, 2023. According to the reports, the input cost has risen after the implementation of the Fire Alarm and Protection System and general inflation. SML Isuzu informed the stock exchanges that the FAPS implementation led to an increase in its vehicles’ prices. Do you know what are the norms of FAPS? If not, keenly follow the next section. Swipe down the page.
What is FAPS?
As mentioned, FAPS stands for Fire Alarm and Protection System. The implementation of the Fire Alarm and Protection System in commercial vehicles has compelled the manufacturers to install fire alarms and sprinkler systems. It is mandatory for school buses to follow the norms of FAPS said the Ministry of Road Transport and Highways (MORTH). In addition, the Ministry of Road Transport and Highways also set a deadline for the manufacturers to implement FAPS in their commercial vehicles. The deadline is October 1, 2023. Therefore, SML Isuzu announced to increase in the prices of its commercial vehicles from October 3, 2023.
How much price of SML Isuzu vehicles increase?
The adherence to the Fire Alarm and Protection System led to the surge of prices of school buses by INR 2.45 lakh. The exchange filing stated, “For all school buses subject to the implementation of compliance with new Norms ‘FAPS’ which is part of AIS 153 norms and related to the safety of buses, the price increase will be in the range of INR 1.95 lakh-2.45 lakh,” The increased price will include 28 percent GST.