SML Isuzu traded higher today after news that the company had raised prices on trucks and buses.

The stock was trading at Rs 704 on the BSE at around 11 am today, some 2.2% above its previous close. SML Isuzu plans to increase truck prices by 4% and bus prices by 6% from April 1.

According to an exchange filing, that helps compensate for higher input prices due to new emissions standards and fight widespread inflation.

From April 1, 2023, new norms for buses will be implemented – BS6 Integrated Onboard Diagnostics II (IOBD-II) and Electronic Stability Control (ESC). Under BS6 or Bharat Stage 6 emission standards, vehicles must be equipped with an onboard diagnostic system to measure real-time emissions of pollutants.

Under BS6 standards, vehicles must keep nitrite and particulate emissions within prescribed limits. While earlier emissions were tested under laboratory conditions, with onboard diagnostics, emissions can be checked on the road.

Electronic stability control is a safety measure that ensures the vehicle does not tip over due to understeer or oversteer.

Prices are expected to rise in the MHCV industry, leading many to buy early. “Demand for medium and heavy commercial vehicles (MHCV) was high in March due to possible price hikes (3-5%) and technological changes due to Bharat Stage VI Phase-2 from April 1, 2023,” brokerage Nomura said in its latest report on March volumes. It made a similar observation in its February volume report.

In Q3FY23, the company reported an operating income of Rs 327.75 crore, up 31.16% year-on-year, with a net loss of Rs 1.3 crore. Its losses narrowed sharply to Rs 9.5 crore a quarter ago from Rs 25.1 crore a year ago.

In February, the company reappointed its chief financial officer, Rakesh Bhalla, until May 31, 2025.