Mumbai, March 7, 2024: India’s leading commercial vehicle manufacturer, Tata Motors, has officially announced a 2% increase in the prices of its commercial vehicles, effective April 1, 2024. The decision, communicated via an exchange filing on Thursday, aims to counterbalance the lingering impact of past input costs.
In a statement, Tata Motors clarified, “While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles.” This move follows a recent 3% hike in commercial vehicle prices that came into effect on January 1, 2024. Additionally, passenger vehicle prices were raised by 0.7% from February 1, with a similar rationale cited to counteract rising input costs.
Tata Motors’ shares witnessed a positive response, settling with a 2.14% gain at Rs 1,039.35 on Thursday. The closing price positioned the stock just 2.53% away from its one-year high of Rs 1,065.60, recorded on March 5.
This development comes in the midst of Tata Motors’ strategic business restructuring. Earlier this week, the company revealed plans to demerge its operations into two distinct publicly listed entities. One entity will focus on the commercial vehicle business and related investments, while the other will encompass the passenger vehicle segment, including electric vehicles, Jaguar Land Rover (JLR), and associated investments.
“The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their strategies with greater agility while reinforcing accountability,” stated Tata Motors in a separate announcement.
As the automotive industry continues to navigate challenges related to input costs and market dynamics, Tata Motors’ pricing adjustments and strategic business decisions reflect its commitment to maintaining competitiveness and financial resilience. The industry and investors alike will be closely monitoring the outcomes of these measures in the coming months.
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