Tata Motors to Raise CV Prices by 2% from 1st April 2024

Tata Motors has announced a 2% price hike on its CVs from April 2024

On March 7th, 2024, Tata Motors, the leading producer of commercial vehicles in India, announced a forthcoming increase in the prices of its commercial vehicle range by up to 2%, effective April 1st, 2024. This decision comes in response to the enduring impacts of previous rises in material costs, affecting all models of their commercial vehicles.

In an official filing to the exchange, the company stated, "India's largest commercial vehicle manufacturer, Tata Motors, has disclosed plans to implement a price hike of up to 2% on its commercial vehicle lineup, commencing April 1st, 2024. The price rise is to offset the residual impact of past input costs. The increase in the price adjustment will vary according to individual model and variant, encompassing the entirety of Tata Motors' commercial vehicle offerings."

Before this announcement, Tata Motors had previously raised the prices of its commercial vehicles by 3% on January 1st and its passenger vehicles by 0.7% on February 1st. The announcement said this price hike was to offset the rise in input costs.

On Thursday, Tata Motors' shares gained 2.14%, reaching Rs 1,039.35. At this closing price, the stock was merely 2.53% away from its one-year high of Rs 1,065.60, observed on March 5th.

Official Statement by Tata Motors

Tata Motors stated, "The demerger represents a logical progression from the earlier subsidization of PV and EV businesses undertaken in 2022, enhancing the ability of each business to pursue its specific strategies for achieving greater growth with increased agility while reinforcing individual accountability."

In other news, Tata Motors disclosed earlier in the week its intention to split its businesses into two distinct listed entities. One entity will encompass the commercial vehicle business and associated investments. At the same time, the other will focus on passenger vehicle operations, including conventional and electric vehicles, as well as Jaguar Land Rover (JLR) and related investments.

About Tata Motors

Tata Motors Limited, part of the Tata Group, is a USD 42 billion company. It's famous worldwide for making cars, trucks, buses, and other vehicles. It focuses on providing smart and electric vehicle solutions. Its motto is "Connecting Aspirations," and it's the top company in India for making trucks and buses and one of the top three companies for making passenger vehicles in India.