Tata Motors, India’s largest commercial vehicle manufacturer, has announced its intention to raise prices for its entire range of commercial vehicles by up to 3% starting from October 1, 2023. This price adjustment is aimed at offsetting the lingering effects of past input cost increases. On September 19, the financial markets were closed due to Ganesh Chaturthi. However, preceding the announcement of the price hike on Monday, Tata Motors’ share price closed 1.02% higher at ₹640.60. Currently, the company’s share price is trading 3.71% lower than its 52 week high of ₹665.30, which it reached on July 26 this year.
Tata Motors’ shares are trading 70.59% higher than their 52 week low of ₹375.5 recorded on December 26 last year. During the session, the company’s market capitalization stood at ₹2,12,827.6 crore, with more than 4.29 lakh shares changing hands, compared to the two week average of 4.85 lakh shares.
This marks the second time Tata Motors has increased prices across its complete lineup of commercial vehicles this year. In April, the company raised prices by 5%, citing compliance with the more stringent BS6 Phase II emission norms as the reason.
Tata Motors stated, “As Tata Motors transitions its entire vehicle portfolio to meet these standards, customers and fleet owners can expect a range of cleaner, greener and technologically superior offerings that deliver higher benefits and lower total cost of ownership. The price increase will be applied across the entire range of commercial vehicles, with the exact amount varying according to the individual model and variant.”
Notably, the company has also increased the prices of its passenger vehicles four times this year to counter increased input costs. In July, Tata Motors raised prices by 0.6% across both internal combustion engine (ICE) and electric vehicle (EV) models and variants. In February, April and May, price hikes of 1.2%, 5%, and 0.6% were implemented across various models and variants, respectively, in response to higher input costs and compliance with BS-VI norms.
During the April to June quarter of FY24, Tata Motors’ passenger vehicle segment experienced robust growth, with sales of 1,40,450 units in the June quarter, driven by new launches and a strong portfolio of sports utility vehicles (SUVs) and EVs. In the same quarter, EV sales surged by 105% to 19,346 units compared to 9,446 units in the corresponding period last year. Of these, 7,025 units were sold in June, marking a 95% increase compared to 3,608 units in the same period last year.