Tata Motors to increase prices of its commercial vehicles from April 1

Tata Motors announced on Thursday that it will increase the prices of its commercial vehicles by 2 per cent, effective April 1. It said that the price increase has been decided on to offset the residual impact of the past input costs. 

“Tata Motors, India’s largest commercial vehicle manufacturer, announced that it will increase the price of its commercial vehicles effective 1st April 2024, up to 2%. The price increase is to offset the residual impact of the past input costs. While the price increase will vary as per individual model and variant, it will be applicable across the entire range of commercial vehicles,” the company said in an exchange filing. 

Tata Motors had, before this, hiked the prices of commercial vehicles by 3 per cent, effective January 1. The company had hiked the prices for its passenger vehicles by 0.7 per cent, effective February 1. It had said in the announcement that this price hike is to offset the the rise in input costs. 

Meanwhile, Tata Motors shares settled with 2.14 per cent gains at Rs 1,039.35 on Thursday. At today's closing price, the stock was just 2.53 per cent away from its one-year high value of Rs 1,065.60, a level seen a couple of days back on March 5.

Separately, Tata Motors earlier this week announced that it would demerge its businesses into two separate listed companies – one will house the commercial vehicle business and related investments, while the other will be the passenger vehicle businesses, including its passenger vehicles, electric vehicles, JLR and related 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 respective strategies to deliver higher growths with greater agility while reinforcing accountability," the automaker had said.